Protesting Uber drivers circled Taiwan's "transport ministry" Friday as the ride-hailing app halted operations on the island following an impasse with the government which has deemed the service illegal.

The motorcade, with about 200 cars carrying Uber logos or slogans such as "Legalize Uber," drove around the transportation authority's building. Several protesters also sat in front of the building, holding placards calling for a meeting with the chief transportation official who slapped a suspension ban on their services last week.

Uber announced Thursday that it would suspend services in Taiwan starting February 10 following the transportation authority's issuance of 11 fines for Uber, which totaled over 230 million new Taiwan dollars (7.4 million US dollars).

Taiwan regards Uber services as illegal as it is not registered as a taxi service, and allegations of tax avoidance. Uber said the allegations were groundless.

"We're not a taxi company so it's absurd to ask us to register as one. We are a smartphone application that connects people willing to share their ride with people needing one," Uber responded earlier in a statement.

The US-based ride-hailing app entered Taiwan in 2013 and up until the ban, operated in four cities, including Taipei and Kaohsiung. It said it has provided 15 million trips, with more than one million people having downloaded the app and 16,000 citizens becoming drivers.

Local taxi drivers accuse the firm of illegally operating taxi services, which has affected their income.

On Friday, Uber released a farewell letter saying it was unwilling to and hoped it was not forced to, withdraw from Taiwan. 

"The decision has affected more than 1 million people that rely on Uber, but these endless fines make it hard to survive in such an environment," it said.

In another statement released Friday, the Uber Taiwan team said they hope to restart conversations with the island's administration to find a way to allow ride-sharing to flourish. "We will do everything we can to restart the service," the statement read.

Taiwan's suspension came after Uber halted services in Hungary last July due to new legislation that stops drivers from making money with their own vehicles. The smartphone app has faced stiff resistance from traditional taxi drivers around the world, as well as bans in some places over safety concerns and questions over legal issues, including taxes. Uber insists it is a platform connecting drivers and passengers, not a transport business like taxi firms.