Daijiworld Media Network – Chandigarh
Chandigarh, Sep 9: The Chandigarh Administration has suspended the aggregator licences of Uber and Rapido for six months over alleged continued non-compliance with the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.
The suspension orders were issued by the State Transport Authority (STA) on Tuesday, September 8, following repeated notices issued to both companies seeking compliance with the prescribed regulations.
According to the administration, Uber and Rapido failed to submit the required documents and did not provide satisfactory responses within the stipulated period. The STA subsequently invoked provisions of the 2025 rules and suspended their licences.
The regulations lay down requirements for app-based transport aggregators operating in Chandigarh, including provisions relating to driver welfare, insurance, training, fares, passenger safety and operational standards.
The compliance issues reportedly included mandatory health and term insurance for drivers, prescribed driver training, adherence to notified fare structures and practices related to driver subscriptions and prepaid recharge models.
The Chandigarh Administration had been seeking compliance from aggregator companies for several months and had warned that licences could be suspended if the prescribed requirements were not met.
The action against Uber and Rapido is part of a broader enforcement drive against app-based transport companies in Chandigarh. Ola's licence was suspended for six months in June over alleged violations concerning driver welfare, insurance, fare regulations and official directions.
In August, the STA also suspended the licence of Indsystems IT Pvt Ltd, the operator of inDrive, for six months over alleged regulatory violations and non-compliance with the 2025 rules.
The six-month suspension means Uber and Rapido cannot operate their services in Chandigarh under the suspended aggregator licences during the period.
The administration's action signals stricter enforcement of the regulatory framework governing app-based transport services in the city. The latest suspensions could also affect commuters by reducing the number of app-based transport options available, while drivers associated with the affected platforms may have to rely on other authorised services during the suspension period.