Uber will not be issued with an operating licence after its current deal expires on September 30, Transport for London (TfL) has announced.

TfL concluded that the minicab app is “not fit and proper” to operate in the capital due to concerns which have “public safety and security implications”.

These include its approach to reporting serious criminal offences and how it carries out background checks on its drivers.

Uber was given just a four-month temporary licence in May.

Mayor of London Sadiq Khan said in a statement: “I want London to be at the forefront of innovation and new technology and to be a natural home for exciting new companies that help Londoners by providing a better and more affordable service.

“However, all companies in London must play by the rules and adhere to the high standards we expect – particularly when it comes to the safety of customers. Providing an innovative service must not be at the expense of customer safety and security.

“I fully support TfL’s decision – it would be wrong if TfL continued to license Uber if there is any way that this could pose a threat to Londoners’ safety and security. Any operator of private hire services in London needs to play by the rules.”

Labour MP Wes Streeting, chairman of the All Party Parliamentary Group on Taxis, said: “This is a courageous decision by the Mayor and Transport for London, finally drawing a line in the sand to make it clear that no company, however big and powerful, will be allowed to flout our laws and regulations or jeopardise Londoners’ safety without facing serious consequences.

“Uber has not shown itself to be a fit and proper operator. It stands accused by the police of failing to properly handle serious allegations of rape and sexual assault of passengers.

“It had to be dragged through the courts to recognise its responsibility to provide even the most basic rights and protections to Uber drivers. Its business model is based on saturating London’s taxi and private hire market to drive its competition off the road.

“That’s why major cities across North America and Europe have already banned Uber from operating on their roads.”

There had been growing speculation that the app could be banned from London. Opponents of the firm claim it causes gridlocked roads and does not do enough to regulate its drivers.

Uber enables users to book cars using their smartphones, and is available in cities across the UK. Some 3.5 million passengers and 40,000 drivers use the Uber app in London.

Last month, Uber was accused by police of allowing a driver who sexually assaulted a passenger to strike again by not reporting the attack, along with other serious crimes.

In a strongly worded letter, Inspector Neil Billany of the Metropolitan Police’s taxi and private hire team suggested the company was putting concerns for its reputation over public safety.

He cited the case of a man who worked for Uber being allowed to stay on the books despite an allegation of sexual assault, leading to another “more serious” attack on a woman in his car.

A string of serious crimes it allegedly failed to report included more sexual assaults and an incident in which a driver produced what was thought to be pepper spray during a road-rage argument.

Uber said at the time it was “surprised by this letter” and claimed it does not reflect the “good working relationship we have with the police”.

Steve McNamara, general secretary of the Licensed Taxi Drivers’ Association said: “The Mayor has made the right call not to relicense Uber. Since it first came onto our streets Uber has broken the law, exploited its drivers and refused to take responsibility for the safety of passengers.

“We expect Uber will again embark on a spurious legal challenge against the Mayor and TfL, and we will urge the court to uphold this decision. This immoral company has no place on London’s streets.”

London is one of 600 cities around the world in which Uber operates (Yui Mok/PA) Confirming Uber would appeal against the decision in court, Tom Elvidge, the firm’s general manager in London, said: “3.5 million Londoners who use our app, and more than 40,000 licensed drivers who rely on Uber to make a living, will be astounded by this decision.

“By wanting to ban our app from the capital Transport for London and the Mayor have caved in to a small number of people who want to restrict consumer choice. If this decision stands, it will put more than 40,000 licensed drivers out of work and deprive Londoners of a convenient and affordable form of transport.

“To defend the livelihoods of all those drivers, and the consumer choice of millions of Londoners who use our app, we intend to immediately challenge this in the courts.

“Drivers who use Uber are licensed by Transport for London and have been through the same enhanced DBS background checks as black cab drivers. Our pioneering technology has gone further to enhance safety with every trip tracked and recorded by GPS.