Chandigarh STA issues show-cause notices to cab aggregators over norms violations

According to officials, it is mandatory for every aggregator company to maintain a functional office in Chandigarh under the Chandigarh Motor Vehicle Aggregator Policy-2025. But inspections revealed that several offices were either closed or non-operational.

Tightening the noose against app-based cab aggregators, Ola, Uber, Rapido, and InDrive, the state transport authority (STA) issued them show-cause notices for violating operational norms.

The STA action was triggered after complaints from thousands of cab and taxi drivers from the Tricity region, alleging that these companies were not adhering to administrative regulations and were denying them essential benefits. (Arun Sharma/HT PHOTO)

According to officials, it is mandatory for every aggregator company to maintain a functional office in Chandigarh under the Chandigarh Motor Vehicle Aggregator Policy-2025. But inspections revealed that several offices were either closed or non-operational. It was found that Ola had vacated its Chandigarh office six months ago. InDrive’s office had minimal infrastructure, with only one employee present who could not respond to official queries. Uber’s registered office address was found to be incorrect, while Rapido’s office was locked. All four companies have been directed by STA secretary Amit Kumar to submit their responses within 15 days. If they fail to provide satisfactory explanations, their operational licences in Chandigarh may be revoked.

The STA action was triggered after complaints from thousands of cab and taxi drivers from the Tricity region, alleging that these companies were not adhering to administrative regulations and were denying them essential benefits. Drivers reported that despite the administration revising cab, taxi, and auto fares on July 7 under the new policy, the aggregators failed to implement the approved fare structure. Instead, the companies allegedly scrapped the commission-based model and introduced a subscription system, which drivers claim has worsened their financial burden. The notice also mentions multiple violations, including non-compliance with rules related to driver health and term insurance, mandatory training, and fare implementation.