Uber has also been forced to suspend the service, which relies on non-professional drivers using their own vehicles, in Germany, France, Italy, Spain and Belgium.
"Our pilot has successfully tested ridesharing in Sweden, however clearer regulation is needed before it can be taken further," Alok Alstrom, general manager for Uber in Sweden, said in a statement.
A March 23 decision by an appeals court in Stockholm upheld one of several rulings in lower courts that UberPOP drivers were breaking the law by driving without taxi permits.
Uber said it hoped it could relaunch the service soon. Its final UberPOP offerings in Stockholm and Gothenburg will run on May 18.
The San Francisco-based company's more expensive UberX service, which uses professionally licensed drivers, will continue to operate in five Swedish cities.
© Thomson Reuters 2016
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