Why Did Chandigarh Ban Uber and Rapido for 6 Months? What Commuters and Drivers Need To Know

Chandigarh has suspended the aggregator licences of Uber and Rapido for six months, effectively stopping their app-based cab and bike services in the city until March 2027, Moneycontrol reported. The State Transport Authority (STA) issued the orders on Tuesday, citing alleged continued violations of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.

The action followed multiple notices issued to the companies seeking documents and evidence of compliance. According to the authorities, the responses received from the platforms were not satisfactory, leading the STA to proceed with the suspensions. Mumbai Autorickshaw Strike: Ola, Uber, Rapido Fares Surge Amid Auto-Taxi Strike Over Marathi Rule.

Why Did Chandigarh Suspend Uber And Rapido?

Uber and Rapido were specifically flagged over alleged non-compliance with several requirements under Chandigarh's aggregator rules, the report said. The authorities had sought information concerning mandatory health and term insurance for drivers, training obligations and compliance with the notified fare structure.

The STA also raised concerns about business practices involving driver subscriptions and prepaid recharge arrangements, according to Moneycontrol. Officials said both platforms were given repeated opportunities to submit the required information and demonstrate compliance. However, with the companies allegedly failing to meet the requirements within the prescribed timelines, the STA imposed six-month licence suspensions.

What Are Chandigarh's 2025 Aggregator Rules?

The Chandigarh Administration Motor Vehicles Aggregators Rules, 2025, establish regulatory requirements for app-based transport platforms operating in the city.

The rules cover areas including driver welfare, insurance, training, fares and passenger safety. The administration has increased its oversight of app-based mobility services since introducing the framework, with operators expected to demonstrate compliance with the prescribed requirements.

The latest action means all four major app-based transport aggregators operating across the Tricity, Uber, Rapido, Ola and inDrive, now face licence suspensions in Chandigarh.

Ola was previously subjected to a six-month suspension in June over alleged breaches involving driver welfare, insurance, fare regulations and other directions issued by the administration. In August, the STA suspended the licence of inDrive's operator, Indsystems IT Pvt Ltd, for six months over alleged violations of the 2025 rules. The latest orders against Uber and Rapido extend the regulatory action to the remaining major platforms operating in the city.

What Does The Suspension Mean For Commuters?

The companies cannot operate their aggregator services in Chandigarh under the suspended licences during the six-month period. For commuters, the action could mean fewer app-based transport options in the city.

Passengers who regularly depend on app-based cabs or bike services may need to consider other available transport options while the suspensions remain in effect.

The impact could also extend to drivers associated with the affected platforms, who may need to seek alternative sources of work during the suspension period.

What Does It Mean For Drivers?

Driver welfare and related obligations are among the areas highlighted by the Chandigarh administration in its enforcement actions.

The authorities had sought information from Uber and Rapido regarding health and term insurance, training requirements and other compliance matters.

The suspension could therefore affect drivers who depend on these platforms for bookings and income in Chandigarh.

Why Is Chandigarh Tightening Oversight?

The administration's actions come after the introduction of the 2025 aggregator rules, which established a more detailed regulatory framework for app-based mobility services.

The repeated licence suspensions indicate that the administration is taking a framework seeks to address issues involving drivers, passengers and aggregator business practices.

The repeated licence suspensions indicate that the administration is taking a stricter approach toward compliance with the notified requirements.

Uber and Rapido's licences will remain suspended for six months under the latest STA orders. The companies' ability to resume services will depend on the regulatory process and their compliance with the applicable requirements. The wider situation also leaves Chandigarh's app-based mobility market facing an unusual scenario, with all four major aggregators now subject to licence suspensions.

(The above story first appeared on LatestLY on Sep 09, 2026 11:29 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).