- Chandigarh suspended Uber and Rapido aggregator licences for six months over rule violations
- The State Transport Authority cited failure to provide documents and respond to compliance notices
- Similar suspensions were earlier imposed on Ola and inDrive for breaches of 2025 aggregator rules
Chandigarh has suspended the aggregator licences of Uber and Rapido for six months, citing alleged violations of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025, according to reports.
The State Transport Authority (STA) issued the suspension orders on September 8, alleging that Uber and Rapido failed to furnish required documents and adequately respond to multiple compliance notices.
The action is part of the Chandigarh Administration's stepped-up enforcement of its regulatory framework for app-based transport operators.
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The administration had earlier suspended the licences of Ola and inDrive for six months over alleged violations of the same rules.
The 2025 framework sets out requirements for aggregators across areas including driver welfare, insurance, training, passenger safety and fare regulation.
During the compliance process, authorities raised concerns over mandatory health and term insurance for drivers, training requirements and adherence to notified fares. The administration has also flagged the use of driver subscription and prepaid recharge models by aggregators as part of its scrutiny of their operating practices.
According to the latest orders, Uber and Rapido were given multiple opportunities to demonstrate compliance before the STA invoked provisions of the 2025 rules to suspend their licences.
Chandigarh had suspended Ola's licence for six months in June, citing alleged deficiencies related to driver welfare, insurance, fares and compliance with official directions.
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In August, the STA took similar action against Indsystems IT Pvt Ltd, the operator of inDrive, over alleged regulatory violations.
The latest suspensions could reduce the number of app-based mobility options available to commuters in Chandigarh. Drivers associated with Uber and Rapido may also have to explore other authorised platforms while the orders remain in force.
The action underscores the Chandigarh Administration's intent to enforce its aggregator rules more strictly and make compliance a condition for continued operations in the city.
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