New taxi laws requiring drivers to have fare meters and seat sensors mean Uber plans to withdraw its service from Denmark next month.
But following complaints from taxi driver unions and politicians, the service will shut down on April 18.
They argued Uber poses unfair competition by not meeting legal standards.
In a statement the firm said: “For us to operate in Denmark again the proposed regulations need to change.
“We will continue to work with the government in the hope that they will update their proposed regulations and enable Danes to enjoy the benefits of modern technologies like Uber.”
Uber will now “allocate resources” to help drivers during the shutdown process.
Despite the withdrawal from Denmark, the California-based company will maintain its software division in Aarhus, where 40 people are employed.