You can't use Uber, Rapido in Chandigarh till March 2027
What's the story
The State Transport Authority (STA) of Chandigarh has suspended the aggregator licenses of Uber and Rapido for six months. The action was taken due to their continuous non-compliance with the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025. Both companies were served multiple notices but failed to submit the necessary documents. This suspension will have a major impact on cab and bike taxi services in the city.
Violation
Compliance trail began in July 2025
The STA's order highlights a compliance trail over a year long.
After cab drivers complained about non-compliance on health insurance, term insurance, driver training, and fare structure, the STA wrote to the aggregator in July 2025.
A committee was formed in August 2025 to examine compliance. It found that the companies had not complied with these rules during an inspection of their local office in September 2025.
Steps
Companies were given multiple chances to comply
The companies were directed to comply with insurance, driver training, and fare rates in meetings chaired by the STA Secretary on January 8 and May 7, 2026.
They were given a deadline of 15 days to submit a compliance report. However, no response was received from either company within this timeframe.
The committee visited their local office thrice in May 2026 and each time reported that the office was found closed or locked.
Policy
Subscription model flagged by STA
The STA also flagged a subscription model used by the aggregators. The Tricity Cab Drivers Welfare Association complained that drivers were being forced to make prepaid recharges or buy subscriptions. Union members presented evidence of fares being charged, indicating an overcharging practice.