Chandigarh cracks down on cab aggregators for failure to implement new fare structure

The companies also don’t have functional offices in the city; they can’t operate in city if they aren’t able to make amends within 15 days

The State Transport Authority (STA) has issued show-cause notices to aggregator companies Ola, Uber, and InDrive for failing to implement the newly approved fare structure and for not maintaining functional offices in the city. The companies have been given 15 days to comply with the rules, failing which their licences will be cancelled.

The companies also don’t have functional offices in Chandigarh; they can’t operate in city if they aren’t able to make amends within 15 days. (HT File)

On July 7, under the Chandigarh Motor Vehicle Aggregator Policy-2025, the administration approved a revised fare structure for cabs, taxis, and auto-rickshaws. For the first time, a flat rate was introduced for the initial three kilometres, fixing the minimum fare at ₹90 against cab drivers’ demand of ₹100. The policy also mandated that drivers should receive 90% of the ride fare. However, the companies neither implemented the revised fares nor followed the guidelines. Instead, they scrapped the commission model and introduced a subscription-based system, which drivers allege has increased their exploitation. Additionally, the Goods and Services Tax (GST) burden was shifted onto drivers.

Raising these issues, Chandigarh Tricity Cab Drivers’ Union president Amandeep Singh, vice-president Surinder Singh Khalsa and secretary Rajinder Kumar Bhatti met Punjab governor and UT administrator Gulab Chand Kataria. They alleged that while aggregator companies are earning crores of rupees daily, they are disregarding administrative orders and exploiting drivers. Other grievances were also presented to the administrator.

Following the meeting, administrator Kataria sought an immediate response from the transport secretary. Dissatisfied with the explanation, he ordered strict action.

STA officials then visited the registered addresses of the companies but found no functional offices. Subsequently, suspension notices were issued. If the companies comply within 15 days, their licences will be restored; otherwise, after three suspension notices, their licences will be revoked, meaning they will not be able to run their services within the city.

Offices only for licenses?

Licences for operating cab and taxi services in Chandigarh were issued on the condition that the companies maintain operational offices in the city. While offices were initially opened, officials later discovered that many were no longer functioning. One office had reportedly been shut for six months. This has led the administration to suspect that aggregator companies opened offices only to secure licences and abandoned them after obtaining approvals.