Chandigarh has suspended the aggregator licences of Uber and Rapido for six months, with the State Transport Authority (STA) citing continued non-compliance with the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025. The orders were issued on Tuesday, September 8.
The action followed repeated compliance notices issued to both companies. According to the administration, Uber and Rapido failed to submit the required documents and did not provide satisfactory responses within the stipulated period, prompting the STA to invoke provisions of the 2025 rules.
Why Uber and Rapido licences were suspended
The Chandigarh Administration Motor Vehicles Aggregators Rules, 2025 set out requirements for app-based transport companies operating in the city. These include provisions covering driver welfare, insurance, training and fare structures.
Among the concerns raised during the compliance process were:
- Mandatory health and term insurance for drivers
- Driver training requirements
- Adherence to notified fare structures
- Practices involving driver subscriptions and prepaid recharge models
The administration had been seeking compliance from aggregator companies for several months. Earlier notices had warned Uber, Rapido and other platforms that their licences could be suspended if they failed to meet the prescribed requirements.
Chandigarh takes action against more aggregators
The latest move is part of a wider enforcement effort by the Chandigarh administration against app-based transport companies.
Ola's licence was suspended for six months in June after the administration cited alleged failures relating to driver welfare, insurance, fare regulations and compliance with official directions.
In August, the STA also suspended the licence of inDrive's operator, Indsystems IT Pvt Ltd, for six months over alleged regulatory violations and non-compliance with the 2025 rules.
What the six-month suspension means
The suspension means Uber and Rapido's aggregator licences to operate their services in Chandigarh will remain suspended during the six-month period.
The action goes beyond a warning or financial penalty. The affected services cannot operate in the city under the suspended aggregator licences during this period.
The administration's approach indicates that app-based transport companies are expected to comply with Chandigarh's 2025 regulatory framework rather than treating its requirements as voluntary.
What Chandigarh's aggregator rules cover
The 2025 framework was introduced to create a regulatory system for app-based transport services operating in the city. Its provisions cover areas including:
- Driver welfare
- Insurance
- Training
- Fares
- Passenger safety
- Operational requirements
The administration has been progressively taking action against companies it believes have failed to comply with these provisions. The suspensions of Uber and Rapido now follow similar action against Ola and inDrive.
For commuters, the latest action could reduce the number of app-based transport options available in Chandigarh. Drivers attached to the affected platforms may also have to look at other authorised platforms during the suspension period.
(With inputs from ANI)
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