The state transport authority (STA) has suspended the aggregator licence of Uber India Systems Pvt Ltd and Rapido for six months, citing repeated violations of the UT administration’s Motor Vehicles Aggregators Rules, 2025, including alleged non-compliance with prescribed fares.
With this, the licences of all major cab aggregators operating in the city, including Ola and inDrive, stand suspended. The move is likely to affect nearly one lakh city residents who depend on cabs on a daily basis.
The action comes in the backdrop of a nearly 100-day protest, including a 16-day hunger strike, by the Chandigarh Tricity Driver Union and Jai Durga Auto-rickshaw Welfare Association.
According to the order by state transport authority (STA) Nitish Singla, action was taken against Uber India Systems Pvt Ltd and Roppen Transportation Services (Rapido) following complaints of violations of rules and licence conditions. The companies were repeatedly issued notices and given opportunities to submit their responses and documents, but the replies were not found satisfactory. The order also refers to violations including the use of non-commercial vehicles.
Tricity cab drivers’ union president Amandeep Singh, said, “Drivers had played a role in getting an aggregator policy notified in 2025, following which fares for cabs and autos were fixed. But despite the notification, the policy was implemented in spirit and the companies continued to have their way.”
{{/usCountry}}Tricity cab drivers’ union president Amandeep Singh, said, “Drivers had played a role in getting an aggregator policy notified in 2025, following which fares for cabs and autos were fixed. But despite the notification, the policy was implemented in spirit and the companies continued to have their way.”
{{/usCountry}}Under the policy, he said, drivers attached to aggregators were to receive a medical check-up every six months, medical insurance of ₹6 lakh, with a 5% annual increase, and ₹10 lakh term insurance, also subject to a 5% annual increase.
He also raised the issue of vehicle eligibility, alleging that white-plate, non-transport vehicles were being attached and operated through aggregator platforms, despite the policy not permitting this.
The biggest concern, however, was the fare structure. A cab fare of ₹25 per kilometre and an auto fare of ₹13 per kilometre had been fixed in July 2025, according to Amandeep. He alleged that drivers were not receiving the prescribed fare, while commissions and service charges further reduced their earnings.
He said drivers could face deductions of 20% commission and an additional 10% service charge, leaving them with substantially less than the notified fare. “If we are not getting the ₹25 fare and nearly 50% is deducted, what is left for the driver?” he questioned.
The drivers ended the hunger strike on Tuesday after the latest licence suspensions.
Tricity cab drivers’ welfare association president Vikram Singh Pundir also welcomed the move, stating that the administration must ensure that the suspended aggregators are completely blocked from operating in Chandigarh. “Ola was suspended on June 17 and inDrive followed, but if their apps continue to function, the suspension serves little purpose. The administration must geo-block suspended companies so drivers and authorities do not face further problems,” he said.
What’s the alternative?
Bharat Taxi app is working. Apart from that, taxis will be parked to pick passengers from usual spots like ISBTs, railway stations, outside malls, markets, institutions and popular food joints.