The Chandigarh Administration has suspended the licenses of taxi aggregators Uber and Rapido for a period of six months. This decision was made because both companies failed to comply with the rules for transport aggregators. This measure came into effect on September 8th.
The sanctions apply to Uber India Systems Private Limited and Roppen Transportation Services Private Limited, which operates Rapido. The decision was made by the State Transport Authority (STA) of Chandigarh.
The administration stated that the companies were repeatedly informed about the need to follow established rules, receiving numerous notifications, undergoing inspections, and hearings. Nevertheless, several issues related to compliance were not resolved.
The STA reported that one of the complaints against the companies is the lack of proper insurance coverage for drivers. Special attention was paid to medical and terminal insurance for bike-taxi drivers, known as Captains.
Furthermore, according to the administration, both companies did not adhere to the fare norms set by the government. The STA also noted that necessary documents requested from the companies were not provided in a timely manner.
Despite the authorities providing the companies multiple opportunities to clarify their position, officials emphasized that the responses received were unsatisfactory. Following this, the decision was made to suspend the aggregators' licenses for half a year.
The State Transport Authority took these actions in accordance with Rule 17 of the Chandigarh Vehicle Aggregator Rules Act of 2025. The administration insists that companies providing taxi and bike-taxi services in the city must adhere to the established rules.
Earlier, in June, Ola's license was also suspended for six months for similar reasons—non-compliance with rules. In the case of Ola, complaints were received regarding driver insurance and training, as well as questions concerning fare setting methods and the company's subscription model.
ANI Technologies, the operator of Ola, was directed to comply with the rules in July 2025. Additional instructions were issued two months later, but according to the administration, the company did not make the necessary corrections.
The committee established to conduct the investigation also found that the company had closed its local office about a year ago without informing the authorities. Despite numerous notifications and meetings, the problems related to rule violations remained unresolved.
Now, after applying similar measures to Uber and Rapido, a serious question has arisen regarding taxi and bike-taxi applications in Chandigarh, as three major aggregator companies have faced similar actions.