Cab hire firm Uber will withdraw from Denmark in April because of new taxi laws that require drivers to have fare meters and seat sensors.
Local taxi driver unions and politicians have complained that Uber poses unfair competition by not meeting legal standards required for established taxi firms.
According to Uber, 300,000 riders use its app in Denmark and it has around 2,000 drivers.
The service will shut down on 18 April.
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 has been operating in Denmark for less than three years.
The firm said it would "allocate resources" to help Uber drivers during the shutdown process. It will maintain its software division in Aarhus in northern Denmark where it employs 40 people.
The firm has faced opposition from traditional taxi drivers in cities around the world. In the UK, a 2015 High Court challenge arguing that Uber should be regulated in the same way as other London taxi businesses was dismissed by a judge.
But in 2016, Uber drivers won the right to be classed as workers rather than as self-employed.
Earlier this month, it suspended its self-driving cars after an accident in Arizona when one of the autonomous vehicles - a Volvo SUV - ended up on its side.
It has also faced negative stories about its workplace practices and a number of executives have quit, including the president Jeff Jones.