The Uttar Pradesh government has brought ride-hailing and delivery platforms under a formal regulatory framework by notifying new rules that make licences mandatory and introduce safeguards for drivers, passengers and gig workers. The move seeks to regulate app-based mobility services operating across the state while setting standards for safety, earnings and accountability.
“The government issued draft rules in March, inviting public comments, and the final rules were issued recently, coming into effect two weeks ago,” a senior transport department official said.
Under the Uttar Pradesh Motor Vehicle (Aggregator and Delivery Services Provider) Rules, 2026, all aggregators and delivery service providers operating in the state, including those using two-wheelers, three-wheelers, e-rickshaws, four-wheelers and buses, will have to obtain a license from the State Transport Authority.
Existing operators have been given 90 days to apply, while new companies must secure approval before starting operations. The license fee has been fixed at ₹5 lakh with a validity of five years. Security deposits will range from ₹10 lakh to ₹50 lakh depending on fleet size.
The rules place strong focus on gig-worker welfare. Aggregators will have to provide drivers health insurance cover of at least ₹5 lakh and term or accident insurance of ₹10 lakh. Drivers will also be free to work across multiple platforms. Those using their own vehicles must receive at least 80% of the fare, while drivers operating aggregator-owned vehicles must get at least 60%.
{{/usCountry}}The rules place strong focus on gig-worker welfare. Aggregators will have to provide drivers health insurance cover of at least ₹5 lakh and term or accident insurance of ₹10 lakh. Drivers will also be free to work across multiple platforms. Those using their own vehicles must receive at least 80% of the fare, while drivers operating aggregator-owned vehicles must get at least 60%.
{{/usCountry}}To strengthen safety, driver onboarding will require Aadhaar verification, at least two years of driving experience, police verification, medical examination and a psychological assessment. A mandatory 40-hour induction training programme has also been introduced.
For passenger safety, vehicles must be fitted with AIS-140 tracking devices and panic buttons linked to a round-the-clock control room and the State Command and Control Centre. Mobile applications will also have to provide passengers the option of choosing a driver of the same gender.
The rules cap surge pricing between 50% and 150% of the base fare. Cancellation charges have been limited to 10% of the fare, subject to a maximum of ₹100.
The government has also introduced phased clean mobility targets, requiring aggregators to increase the share of electric and clean-fuel vehicles in their fleets every year.
Violations can attract penalties ranging from ₹25,000 to ₹1 crore, besides suspension or cancellation of licences. The framework also covers bike-taxi and hyperlocal delivery services.
“Till now, UP did not have rules to regulate these vehicles. The new provisions will benefit passengers, drivers and gig workers in a big way, besides bringing good revenue to the exchequer,” the official said.