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App-based rides hit in Chandigarh as Uber, Rapido licences suspended for 6 months
Officials said Uber and Rapido failed to satisfy the prescribed norms relating to driver insurance and training, fares, vehicle eligibility and other safety and operational norms despite being given multiple opportunities.
Officials said both Uber and Rapido had been provided adequate opportunities to demonstrate compliance, but their responses were not found satisfactory. (file photo)
The Chandigarh Administration Tuesday suspended the licences of Uber and Rapido for six months, cutting off two of the city’s most widely used app-based cab services with immediate effect.
The State Transport Authority (STA) has said the companies failed to satisfy the prescribed regulations relating to driver insurance and training, fares, vehicle eligibility and other safety and operational norms despite being given multiple opportunities
Earlier, the Union Territory had suspended the licences of Ola and inDrive, citing alleged violations of driver welfare and training.
The regulatory crackdown on the sector is likely to affect thousands of commuters travelling between Chandigarh, Panchkula and Mohali, particularly daily office-goers and late-night travellers.
Issues flagged
In Uber’s case, one of the key issues was its alleged failure to implement the fare structure notified by the Chandigarh Administration in July 2025. The STA had also received complaints alleging that passengers were being charged fares higher than the prescribed rates.
The authority also raised objections to Uber’s subscription or recharge-based model for drivers, which it found inconsistent with the UT’s aggregator regulations. Officials further found that non-commercial vehicles were attached to the platform, as against the rules.
Moreover, officials reportedly found Uber’s local office in Sector 47-C closed or locked during three inspections conducted in May.
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Rapido, meanwhile, was flagged for several similar compliance issues. According to STA, the insurance cover provided to its bike-taxi captains was limited to accidental death and injury. It did not fulfil the broader insurance requirements prescribed under the 2025 rules.
The Rapido office in Sector 32-D was also reportedly found locked during three inspections. The company was additionally flagged over its subscription model, alleged overcharging and the attachment of non-commercial vehicles to its platform.
The action follows growing friction between regulators, aggregators and drivers over the functioning of app-based transport services. Driver representatives have also raised concerns over fare structures and commissions, alleging that aggregators were charging commissions beyond the limit prescribed by the Chandigarh Administration.
The STA said both Uber and Rapido had been provided adequate opportunities to demonstrate compliance, but their responses were not found satisfactory. The licences were suspended for six months under Rule 17 of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.
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With Uber, Rapido, Ola and inDrive all facing suspension, the choices available to passengers for app-based rides in the city have sharply narrowed.
© The Indian Express Pvt Ltd
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