The car hire app is already facing action in London after Transport for London (TfL) refused to renew the company's operational license over concerns for passenger safety, and now they must appeal to a second refusal from council members in Brighton.
Members of the council in the English coastal city have chosen not to renew the minicab firm's license over concerns about data security and driver provenance.
A council spokesperson said: "Our priority is the safety of residents and visitors and, due to the data breach and the lack of commitment to using drivers licensed here, we were not satisfied that UBL (Uber Britannia Limited) are a fit and proper person to hold an operator's licence."
Uber has already stated it plans to appeal the decision, as it is currently doing with the situation in the English capital.
Brighton's decision comes after Uber was forced to change their app for users in London, ahead of their final hearing in June which will decide whether or not the company can continue to operate within the city.
In a blog post on Uber's website in March, the app developers stated that rides will now be accepted before allocating drivers, and only drivers licensed to be a private hire driver in London will be able to operate within that region.
The changes come after TfL raised concerns some Uber drivers - particularly those operating at airports on the outskirts of London - may be licensed by neighbouring authorities, which TfL do not have control over.
The ride-hailing app also pledged to report crimes directly to police, following concerns that passengers were being put at risk because of delays in the reporting of sexual assaults.