Authorities in Australia's New South Wales state on Monday suspended the licences of 40 Uber taxi drivers, the media reported.
Uber cab service puts passengers in contact with drivers through a mobile application, EFE news reported.
Roads and Maritime Services director Peter Wells said the step was taken to sanction those who permit the use of such vehicles in an illegal system of passenger transport.
Uber responded in a statement saying, "we are reviewing the legal options to reverse this decision."
The measure, which will be in effect for three months starting from Wednesday, comes at a time when taxi associations are urging authorities to make Uber drivers pay the same amount to get their permits.
Uber, founded in 2009 in the US, operates in more than 50 countries.