The Westminster Magistrates' Court ruled in Uber's favour by granting it a 15 month license to operate in the British capital.
The tech company, had no choice but to appeal as Transport for London refused to renew its license in September.
According to CNN, the transport authority had earlier said Uber was not fit and proper, citing several concerns including how it responded to serious crimes.
The decision announced on Tuesday is a major victory for Dara Khosrowshahi, who as the CEO of the company has reformed its policies.
"We are pleased with today's decision. We will continue to work with Transport for London to address their concerns and earn their trust," CNN quoted Uber's statement.
Uber rolled out new insurance policies and opened a 24*7 helpline.
Rather than relying on customers and drivers, it now reports serious incidents to police.
On Tuesday, the judge Chief Magistrate Emma Arbuthnot agreed that Uber had not been fit and proper at the time of its suspension.
However she said she was convinced by its reforms.
"[Uber] has provided evidence to this court that it is now fit and proper," CNN quoted Arbuthnot as saying.
Uber has around 3.5 million riders and provides employment to 45,000 drivers in London.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)