Chandigarh has suspended the aggregator licences of Uber and Rapido for six months with immediate effect, after the State Transport Authority said both
platforms repeatedly failed to comply with local transport rules.
The orders were issued on September 8, 2026, by Nitish Singla, Secretary, State Transport Authority, UT Chandigarh. The action has been taken under Rule 17 of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025. Uber operates in the city through Uber India Systems Private Limited, while Rapido is run by Roppen Transportation Services Private Limited.
Why Chandigarh suspended Uber and Rapido
The action follows more than a year of notices, inspections and meetings.
According to the STA order, complaints from cab drivers had raised issues around health insurance, term insurance, driver training and fare rules. The authority first sought compliance details in July 2025 and sent another reminder the following month.
A committee was later formed to inspect compliance. It visited the local office in September 2025 and found that several provisions had still not been followed.
The STA then issued a show-cause notice in October 2025.
Meetings were held again on January 8 and May 7, 2026, where the companies were asked to comply with insurance rules, driver training requirements and the fare structure notified on July 7, 2025.
The order says no compliance reply was received after those meetings.
STA flags locked offices and fare issues
The compliance committee visited the local address provided by the company three times in May 2026. On all three visits, the office was reportedly found closed or locked.
The STA also raised concerns about the subscription and prepaid recharge model used by aggregators.
The Tricity Cab Drivers Welfare Association told the authority that drivers were being asked to buy subscriptions or make prepaid recharges. Records submitted by union members on September 3 were cited by the STA as evidence of the model being used, along with alleged overcharging.
Under Chandigarh’s 2025 rules, aggregators cannot charge more than the taxi fare fixed by the administration. They can offer fares up to 20 per cent lower after informing the STA.
Insurance and vehicle rules also under scrutiny
The order says insurance offered to bike-taxi captains covered accidental death and injury but did not meet the wider requirements under local rules.
The STA also found non-commercial vehicles listed among vehicles attached to the platform, which is not allowed in Chandigarh.
Uber and Rapido now join Ola and inDrive, whose aggregator licences were suspended earlier this year for six months after separate compliance action by the Chandigarh transport authority.
