A court in Frankfurt ruled that the firm lacked the necessary legal permits to operate under German law.
It has emerged that the firm was told last week that it could no longer take passengers and faced a fine if it did so.
The ruling is a temporary injunction, meaning that the situation could change after a follow-up hearing, Der Spiegel reported.
The summary judgment follows the decision by London's transport authorities not to pursue a case against Uber in June this year.
The San Francisco-based firm allows passengers to summon cars using an app on their smartphones and calculates the fare en route. It is often significantly cheaper than rival taxi companies.Taxi driver in Berlin held a protest against ride-sharing apps in June
But taxi drivers argue that Uber has fewer regulatory burdens placed upon it than they do, and poses unfair competition.
The company - which is backed by Google and the bank Goldman Sachs, among others - has been the subject of protests by taxi drivers in many European cities, including Berlin, Paris and London.
Only last week, Uber said it was planning to rapidly expand its German operation.