The council said the current licence holder had failed to answer questions sent by the licencing team about its management.
It has had its licence suspended, from 18 December onwards, after it failed to respond to requests for information, the council said.
"We received a new application, for a licence to operate taxis in Sheffield, from Uber Britannia Limited, on 18 October 2017 which we are now processing".
On Monday, Uber begins its appeal against a separate suspension in London, where around 40,000 drivers use the app and serve 3.5 million customers.
Metro.co.uk has contacted Uber for a statement.
Sheffield's ruling follows a similar decision made by London's transport regulator, which proposed Uber be banned from the capital because of safety concerns.
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Sheffield city council has said that the law doesn't allow for a license to transfer to a different name.
The American tech company is now fighting a ban in London, where it lost is licence in September.
Uber said it submitted an application for a new licence on October 16 which continues to be processed by local officials.
Uber previously reached out to Sheffield city council on October 5 letting them know that they needed to change the name on the license because the individual would soon be leaving the company.
The app will submit an appeal if the new application cannot be resolved by December 18 so its drivers can continue to take passengers, the spokesman said.
"We hope this administrative error can be quickly resolved".