After a hearing at Westminster Magistrates' Court, judge Emma Arbuthnot ruled that Uber should be able to keep operating in London.
She granted Uber a 15-month operating licence in the capital, which could be extended, after finding that the company was "fit and proper".
The result is a major victory for Uber's chief executive Dara Khosrowshahi, who was appointed by the Silicon Valley giant earlier this year.
But the London Taxi Drivers' Association (LTDA) attacked the decision, accusing the ride-hailing app of a "blatant disregard" towards public safety.
Transport for London (TfL) officials revoked Uber's permit in the capital last September after raising fears about passengers' safety.
Uber admitted to making "serious mistakes" but told the court it had made "wholesale" reforms in the past nine months.
It also agreed to pay TfL's £425,000 court costs, with the judge saying: "Uber has brought the whole thing on themselves and should pay the costs."
After the ruling, Mayor of London Sadiq Khan said Uber had been "forced to overhaul the way it operates not just in London but across the world".
He added: "I fully supported Transport for London's decision not to renew Uber's operating licence last September.
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I believe everyone must play by the same rules
"I believe everyone must play by the same rules, no matter how big or powerful they are.
"After years of operating poorly in London, Uber has now accepted that TfL's action in refusing to renew their licence was totally justified.
"Today our stance has been vindicated by the court.
"Uber has been put on probation – their 15-month licence has a clear set of conditions that TfL will thoroughly monitor and enforce."
Uber has been able to continue operating in the capital while the appeal process was underway.
Steve McNamara, head of the LTDA, said: "We're disappointed that the court has sided with Uber and the firm has been given an 15-month licence to operate in London.
"Uber's blatant disregard for TfL's regulations and public safety was laid before the court.
"The justice system has failed Londoners today and let an aggressive multinational corporation win.
"Uber is not a fit and proper operator and the LTDA will be consulting its lawyers as to how we can hold it to account and keep streets safe for Londoners."
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