After testing its self-driving cars in Pittsburgh, San Francisco was supposed to be the ride sharing group's second testing ground.
However, the California Department of Motor Vehicles requires a permit to test autonomous vehicles on public roads.
"Our cars departed for Arizona this morning by truck," an Uber spokesperson said. "We'll be expanding our self-driving pilot there in the next few weeks."
"Arizona welcomes Uber self-driving cars with open arms and wide open roads," Arizona governor Doug Ducey said.
"While California puts the brakes on innovation and change with more bureaucracy and more regulation, Arizona is paving the way for new technology and new businesses," he said.
Uber's programme had be running for just a week in California when the state department said it had to shut down and comply with permit requirements.
The company argued against the permit, saying their taxi cars are not fully autonomous.
"We're now looking at where we can redeploy these cars, but remain 100 per cent committed to California and will be redoubling our efforts to develop workable statewide rules," Uber said earlier today.