Uber applied to operate in the city after 50,000 people tried to access the service there in a year, despite it not being available.
But licensed drivers and private hire firms rallied together to try and block the firm, which allows users to request a car through its mobile phone app.
Two of the city's biggest private hire firms, 001 Taxis and Royal Cars, merged and launched their own app earlier this year to combat the potential threat.
Uber applied to operate in Oxford after 50,000 people tried to access the service there in a year, despite it not being available (stock image)
They also raised concerns about the safety of Uber, questioning whether its drivers would abide by Oxford City Council's regulations.
A year after announcing its intention to move to the city, Uber's bid has been rejected as the company 'didn't get around to' submitting vital details in time.
Local cabbies are delighted at the decision.
Niaz Mohammed, managing director of Royal Cars, said: 'It's great news for us and our customers.
'We were very concerned about the safety of Uber and whether its drivers would abide by Oxford City Council's regulations.
'Their goal is to close down all the other companies and they would have disrupted the system that has been in place for many years.'
City of Oxford Licensed Taxicab Association secretary Sajad Khan added: 'I'm very pleased and I'm sure all the city's drivers are.
'It would have been devastating for our trade and they would have wrecked the current system.
'They charge awkward fares and there is also the question of safety. Our drivers go through very stringent checks but you hear some worrying stories about Uber drivers.'
A spokesman for Uber said it would not rule out reapplying in the future.
This comes as plans to ban Oxford's black cabs from a new road to the city's shopping centre were put on hold.
Two of Oxford's biggest private hire firms, 001 Taxis and Royal Cars, merged and launched their own app earlier this year to combat the potential threat
Source : Daily Mail