The city's council explained its decision yesterday by citing recent complaints it had received about the service and a global data protection breach that has hit Uber's reputation.
Uber has previously twice been granted licence to operate in York and its current licence there is due to expire on December 24.
The company has 21 days to lodge an appeal and can continue to operate in the city if it does so.
"I believe that increased choice and competition is a good thing for both passengers and drivers in terms of increasing standards across the board," he said
Also Read
But Saf Din, head of the York Hackney Carriage Drivers Association, told the meeting that Uber was "systematically abusing" local laws and "looking for loopholes" by using out- of-town vehicles.
The city of Sheffield in northern England earlier this month also said it had suspended Uber's licence, although the company can operate if it appeals.
Around 40,000 drivers use the app in London and serve 3.5 million customers.
Disclaimer: No Business Standard Journalist was involved in creation of this content