The city of Anaheim has announced plans to shut down all Uber and Lyft services.
This is despite Uber CEO Travis Kalanick saying he thinks the company can “fix” its system.
Anaheim is also the second US city to shut out ride-sharing services.
Uber is the first US company to be banned from operating in the US after a federal court ruling in October 2015.
The company has since filed an appeal with the US Federal Trade Commission, which is expected to rule soon.
Uber has faced criticism for its refusal to cooperate with regulators in its quest to fix its app, which was created by former Apple employee Evan Spiegel.
Uber was the first ride-hailing service to accept credit cards, but it also lost control of the market when it adopted the payment app Paypal.
The court ruling against Uber, which overturned the company’s previous ruling that the app was not a taxi service, resulted in a $1 billion settlement with the company.
Uber faced similar backlash after a 2015 report showed its CEO, Travis Kalas, made a $25,000 payment to an Uber investor.
The investigation, however, has since been dropped by the company, which said it “never knew” the payment was made.
Uber’s appeal against the ban has been dismissed, with the city saying the company should not have been allowed to operate as a taxi company.