CHANDIGARH: Chandigarh residents will no longer be able to book cabs or bikes through Uber and Rapido, as the State Transport Authority (STA) of Chandigarh has suspended the aggregator licences of both platforms for six months, with immediate effect, till March 2027.
The aggregator licences of Ola and inDrive had earlier been suspended for the same period in June and August this year, respectively. With this, all four major cab aggregators operating in the Tricity, Chandigarh, Mohali and Panchkula — Ola, inDrive, Uber and Rapido, now stand suspended.
Only Sahkari Taxi Cooperative Limited’s Bharat Taxi remains operational in the city, leaving daily commuters with a single major option.
The licences of Uber and Rapido were suspended by the STA for six months, citing sustained failure to comply with the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.
The orders were issued on Tuesday (September 8) under Rule 17 of the 2025 Rules, notified on June 24, 2025, by Nitish Singla, Secretary, State Transport Authority, Chandigarh.
The orders noted that, instead of responding on compliance, the companies submitted representations seeking the adoption of the Ministry of Road Transport and Highways’ Motor Vehicle Aggregator Guidelines, 2025, in Chandigarh. A list of attached vehicles submitted in July 2026 also showed non-commercial vehicles attached to the platforms, which is not permitted in the Union Territory. The STA concluded that the companies had “willfully” failed to comply despite being given sufficient opportunity and considerable time.
When contacted, Nitish Singla confirmed to TNIE that the aggregator licences of Uber and Rapido had been suspended for six months as they were not complying with the directives and rules laid down by the Chandigarh Administration and there had been repeated complaints of violations.
“Both companies were given sufficient opportunity to comply with provisions relating to driver health and term insurance, training and the notified fare structure, but they wilfully failed to do so despite considerable time having elapsed,” he said.
Sources said that following complaints from cab drivers alleging non-compliance with health insurance, term insurance, driver training and fare structure requirements, the STA wrote to the aggregators in July last year and again sent reminders in August, seeking compliance reports within 15 days. The replies received were examined and found not to be in consonance with the rules.
Uber’s services in the Union Territory are operated by Uber India Systems Private Limited, which was granted an aggregator licence on February 27, 2024, under the Motor Vehicle Aggregator Guidelines, 2020, adopted by the Chandigarh Administration in November 2022. Rapido is operated by Roppen Transportation Services Private Limited. Both licences are deemed to have been issued under the 2025 Rules.
According to the order, Uber was first asked to submit a compliance report on July 8 last year and was issued a show-cause notice on October 10 after its response was found unsatisfactory. A committee found Uber’s local office in Sector 47-C non-functional, with the office found “closed/locked” during three inspection visits in May this year. A letter sent via Speed Post was returned marked “unclaimed”.
The order stated that Uber had failed to implement the fare rates notified on July 7, 2025, and was found to be overcharging commuters in violation of Rule 14(iii), which caps aggregator fares at the rate fixed by the Administration.
Complaints from transport unions on August 24, 27, September 1 and 3, as well as a fresh complaint from the Chandigarh Cab Driver Union on September 7, flagged a subscription/recharge model being imposed on drivers, which is also a violation of the rules. Non-commercial vehicles were also found attached to the platform.
The suspension order against Rapido cited similar lapses. The company’s insurance cover for bike-taxi captains was found to be limited to accidental death and injury, falling short of the coverage mandated under the 2025 Rules. Its Sector 32-D office was also found locked during three visits in May 2026.
The order noted that Rapido had sought the incorporation of the Centre’s Motor Vehicle Aggregator Guidelines (MVAG), 2025, instead of Chandigarh’s own rules. Complaints from the Tricity Cab Drivers Welfare Association on September 3 flagged the subscription model and overcharging, while non-commercial vehicles were also found attached to the platform.
The STA had earlier suspended the aggregator licences of ANI Technologies, which operates Ola, and Indsystems IT, which runs inDrive, for six months each. All four platforms had also been issued show-cause notices following inspections at their listed Chandigarh offices.
An official clarified that most cab operators were also registered on the Bharat Taxi platform and that the public could use it to book cabs. The official, however, admitted that there was likely to be some inconvenience to commuters in the coming days.
Cab drivers’ unions had been on strike for the past few days, alleging that the companies were not adhering to the notified fare structure and were instead charging a commission of about 30 per cent, exceeding the 20 per cent limit set by the Chandigarh Administration.
The general public has also been advised not to book rides through these apps during the suspension period to avoid inconvenience. Commuters have been urged to use alternative aggregator platforms registered with the Chandigarh Transport Department and the local bus network of the Chandigarh Transport Undertaking.