Days after cabinet nod, UP govt issues draft notification on registration for cab, delivery apps

According to the proposal, all companies already operating in the state will have to obtain a licence within 90 days of the rules being notified, while new platforms will need to secure a licence before launching their services. The Uttar Pradesh State Road Transport Authority will be responsible for issuing licences and monitoring these platforms.

Four days after the Cabinet mandated registration for app-based cab and delivery services operating in the state, the Uttar Pradesh government has issued a draft notification titled ‘Uttar Pradesh Motor Vehicle (Aggregator and Delivery Services Provider) Rules, 2026’, proposing mandatory licences for companies along with stricter safety and compliance norms.

Officials said the proposed rules aim to bring the fast-growing aggregator sector under a clear regulatory framework and improve passenger safety. (For representation)

According to the proposal, all companies already operating in the state will have to obtain a licence within 90 days of the rules being notified, while new platforms will need to secure a licence before launching their services. The Uttar Pradesh State Road Transport Authority will be responsible for issuing licences and monitoring these platforms.

Officials said the proposed rules aim to bring the fast-growing aggregator sector under a clear regulatory framework and improve passenger safety. The draft also focuses on driver training, grievance redressal and stronger monitoring of services provided through mobile applications.

Licence and compliance rules

Under the draft rules, aggregators will have to apply through a government portal to obtain a licence. The application fee has been fixed at ₹25,000, while the licence fee will be ₹5 lakh. The licence will remain valid for five years and can be renewed for another five years.

Companies will also be required to maintain an office in UP and follow laws such as the Motor Vehicles Act, Consumer Protection Act, Information Technology Act and the Digital Personal Data Protection Act.

Driver training mandatory

The draft rules make driver training compulsory before they start working on aggregator platforms. Drivers will have to undergo at least 40 hours of training covering road safety, traffic rules, emergency response, and proper use of the app.

Notably, if a driver’s rating drops below a certain level, the platform may require them to undergo refresher training before continuing work.

Safety features in apps

To improve passenger safety, the government has proposed several features to be built into the apps used by aggregators. These include live location sharing, clear driver identification through photographs, and the option for passengers to contact the driver even after the trip for a limited time. Companies will also have to run a 24×7 control room and call centre to handle complaints and monitor trips. Drivers found using alcohol or drugs while on duty may face strict action.

Focus on e-vehicles

The draft rules also encourage companies to gradually increase the number of electric and alternative fuel vehicles in their fleets as part of the state’s push for cleaner transport. The government has invited objections and suggestions from stakeholders and the public within 30 days of the draft notification. After reviewing the feedback, the rules may be finalised and implemented.

Penalties on ride cancellations

The draft rules also propose penalties for unjustified ride cancellations. According to the provisions under Rule 125V, if a driver cancels a booking after accepting it without a valid reason, a penalty of 10% of the total fare, capped at ₹100, will be imposed. Similarly, if a passenger cancels a ride in violation of the platform’s guidelines, the same penalty may apply. The draft rules also state that if a driver fails to reach the pickup point within 10 minutes of the scheduled arrival time, the cancellation will be treated as a driver cancellation and a ₹100 penalty will be levied, with the amount adjusted as a concession to the passenger in the next ride.

Key proposed rules

1- Licence mandatory for cab and delivery aggregator platforms

2- Existing operators must obtain licence within 90 days

3- ₹25,000 application fee and ₹5 lakh licence fee proposed

4- Licence validity only for five years

5- 40-hour training mandatory for drivers

6- Apps must provide live tracking and driver identification

7- Companies must run a 24×7 control room and helpline