The Uber service recently expanded to Phuket and was in the process of recruiting drivers and attracting customers.
Today's announcement from the Land Transport Department confirms the decision from a meeting yesterday.
The department said that Uber drivers mostly were behind the wheels of personal cars not registered taxis, creating doubts about the safety of passengers and insurance liabilities in the event of a crash.
Arrested drivers would be fined 2000 baht for having the wrong kind of vehicle and 1000 baht for not having a taxi driver's licence.
The Land Transport Department added that the Uber service was also very expensive compared to traditional Bangkok taxis.
Uber's recent arrival on Phuket was accompanied by a splurge of free promotional publicity in the island media.
The main difference with Uber is that the brand claims to use an app to access the nearest driver for quick service. Payments are by credit card only.
Although the service is said to be doing well in the US, London taxi drivers have protested over Uber and similar services.
In Sydney, one hire car owner, disillusioned with Uber, has made eight citizen's arrests of Uber drivers operating illegally.
On Phuket the island's taxi and tuk-tuk services are so expensive and disorganised that Uber's arrival is hardly likely to bring any improvement in a hurry.
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