Uber, Rapido licenses suspended for 6 months in Chandigarh
What's the story
The Chandigarh administration has suspended the aggregator licenses of ride-hailing services Uber and Rapido for six months. The suspension, which came into effect on September 8, was imposed on Uber India Systems Private Limited and Rapido operator Roppen Transportation Services Private Limited. The action was taken by the State Transport Authority (STA) under Rule 17 of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025, over repeated violations of the city's motor vehicle aggregator rules.
Compliance failure
Multiple violations by companies
The STA's decision comes after both companies, despite receiving multiple notices and show-cause notices over a year, failed to comply with the rules.
The violations included inadequate health and term insurance coverage for drivers, particularly bike-taxi captains, and non-implementation of the fare structure notified by the administration.
The STA said inspections were also conducted and hearings held, but the companies failed to submit required documents or provide satisfactory responses.
Lack of response
Suspension is immediate, will remain in force for 6 months
The suspension is immediate and will remain in force for six months.
The aggregator licenses of Ola and inDrive were earlier suspended for the same period in June and August this year, respectively.
With this, all four major cab aggregators operating in the Tricity, Chandigarh, Mohali and Panchkula, namely Ola, inDrive, Uber and Rapido, now stand suspended.