Chandigarh suspends Uber, Rapido licences for 6 months over policy violations
The suspension follows repeated notices and complaints over driver insurance, training and fare rules, with officials saying both companies failed to respond satisfactorily.
- On Tuesday, September 8, 2026, the State Transport Authority of Chandigarh suspended the aggregator licenses of Uber and Rapido for six months, citing sustained failure to comply with the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.
- Repeated failures to meet requirements concerning driver welfare, insurance, training, and fare structures prompted the STA's decision after the administration issued multiple compliance notices over the past year without receiving satisfactory responses.
- Investigators reported the platforms' local offices were repeatedly found closed during inspections, while the Tricity Cab Drivers Welfare Association alleged the companies forced drivers to buy subscriptions and prepaid recharge plans.
- Effective immediately, the suspension prohibits Uber and Rapido from operating their services within the Union Territory for six months, forcing drivers attached to the platforms to seek alternative authorized transport services.
- Chandigarh authorities previously suspended licenses of ANI Technologies, which operates Ola, and Indsystems IT, the operator of inDrive, due to similar regulatory non-compliance, marking a broader enforcement effort against app-based transport services.
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The cab aggregator licenses of Uber and Rapido have been suspended for six months in Chandigarh. This action was taken due to violations of Motor Vehicle Aggregator Rules and the lack of insurance for the drivers. The administration issued several notices and conducted inspections against the companies, but the rules were not followed.
Chandigarh takes action against Uber and Rapido, licences suspended over policy non-compliance
Chandigarh's State Transport Authority has suspended the aggregator licences of Uber and Rapido for six months over alleged non-compliance with the Chandigarh Aggregator Policy, 2025. The action followed multiple notices seeking documents and satisfactory responses from both companies.
Uber, Rapido licences suspended in Chandigarh for 6 months over rules violation
According to the administration, both companies failed to comply with the rules despite receiving repeated notices, show-cause notices and opportunities to present their case over more than a year.
Why has Chandigarh suspended Uber, Rapido licences for six months?
For commuters, the latest action could reduce the number of app-based transport options available in Chandigarh, while for drivers attached to the affected platforms, it could mean having to look at other authorised platforms during the suspension period.
The Economic Times
Times of IndiaChandigarh suspends Uber, Rapido licences for 6 months over policy violations
Chandigarh's State Transport Authority suspended Uber and Rapido licenses for six months. This action resulted from their failure to comply with the Chandigarh Aggregator Policy. Both companies received multiple notices but did not submit required documents. The suspension impacts cab and bike-taxi bookings significantly in the city. App-based rides constitute a substantial portion of daily commutes.
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