TfL cited failures to report serious criminal offences, conduct sufficient background checks on drivers and other safety issues as grounds for not renewing Uber's licence.
Uber is prepared to make concessions to ensure its licence to operate in London is renewed, its general manager for the capital has said.
However, deep contradictions can be seen in the confrontation, which is something new to people in Britain.
"It's a technical decision that picks up the spirit of the age", said Tony Travers, an expert on local government at the London School of Economics.
In London, Uber has faced criticism from unions, lawmakers and traditional black cab drivers over working conditions.
"But in the bigger picture, this is a potentially defining confrontation between the demand for cheap services and the power of regulators", The Times newspaper said on its opinion page on Saturday.
The licensing body also said it was concerned by Uber's use of Greyball, a software that can be used to block regulatory bodies from gaining full access to its app and undertaking regulatory or law enforcement duties, the Guardian reported.
More than 3 million customers use the Uber app in London, along with 400,000 drivers. Saturday night the Save Your Uber in London campaign on the Change.org website had gained almost 600,000 signatures. "Black cabs overcharged for expertise that had been supplanted by satellite navigation technology while minicab firms made customers wait".
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In comments that suggested the United States could withdraw from the deal unless changes are made, U.S. President Barack Obama's second term in office.
Fred Jones responded by saying Uber had revolutionised the taxi market in London and the rest of the United Kingdom, actually improving safety for passengers and drivers - not harming it.
New cars come equipped with safety systems.
Uber's new CEO Dara Khosrowshahi, in a note to employees obtained by The Associated Press, wrote that he disagreed with the decision but it was based on past behavior.
Sadiq Khan, the Mayor of London, supports TfL's decision completely.
Meanwhile, rival app Lyft is reportedly looking to muscle in on the London market, with a Freedom of Information request revealing the San Francisco-based start-up had held talks with TfL and City Hall in the previous year, according to the Sunday Telegraph.
Mr McCluskey told Peston on Sunday he had never taken an Uber and added: "I'm one of these people that believes that Uber is part of this awful, race-to-the-bottom, culture that has developed in this country".
On the BBC's Andrew Marr Show, Labour leader Jeremy Corbyn said TfL's decision had given Uber an opportunity to "mend its ways". "In doing so, we will show that Uber is not just a really great product, but a really great company that is meaningful contributing to society, beyond its business and its bottom line". He further tweeted an appeal to people of London to "work with us" in solving the issue.