The Chandigarh administration has suspended the aggregator licences of ride-hailing platforms Uber and Rapido for a period of six months, citing repeated non-compliance with motor vehicle aggregator regulations. The order, issued by the State Transport Authority (STA), came into effect on September 8 and applies to Uber India Systems Private Limited and Roppen Transportation Services Private Limited, the company that operates Rapido. Both firms had been directed on multiple occasions to bring their operations in line with the city’s aggregator rules but failed to act on the concerns raised.
What Triggered the Licence Suspension
The STA’s order follows an extended review during which both companies were issued several notices, subjected to inquiries, and given hearings to explain their position. Despite these opportunities, officials said the firms did not resolve the outstanding compliance issues.
The State Transport Authority (STA), Chandigarh, has suspended the aggregator licences of Uber and Rapido for six months due to the companies’ failure to comply with the rules stipulated in the ‘Chandigarh Aggregator Policy, 2025’.
— ANI (@ANI) September 8, 2026
According to the administration’s order,… pic.twitter.com/icLgyx96jM
A central concern flagged by the authority was the absence of adequate insurance cover for drivers, particularly for riders operating bike-taxi services under the platforms. Officials noted that health and term insurance requirements for these “captains” had not been met. The administration further stated that the companies also fell short on adherence to government-mandated fare structures and were slow to furnish documents requested during the review process. Officials said that despite repeated chances to respond, neither company provided a satisfactory explanation, prompting the decision to suspend both aggregator licences for six months.
Chandigarh’s Rule Enforcement Under Aggregator Policy 2025
The action has been taken under Rule 17 of the Chandigarh Motor Vehicle Aggregators Rules, 2025, which mandates that all companies operating cab and bike-taxi services in the city adhere to a defined set of operational and safety norms. The administration has reiterated that compliance with the Chandigarh Aggregator Policy, 2025 is mandatory for any platform running app-based transport services in the region, and that continued lapses will invite regulatory action regardless of a company’s market position.
Third Ride-Hailing Firm Face Action After Ola Suspension
This is not the first time the Chandigarh administration has taken such a step. In June, the STA had suspended Ola’s licence for a similar six-month period after the company, run by ANI Technologies, was found to have ignored repeated compliance directives dating back to July 2025. That case also involved complaints about driver insurance and training, along with questions over the company’s fare-setting methods and subscription-based model.
A review committee examining Ola’s operations had additionally discovered that the company had vacated its local office nearly a year earlier without informing the authorities, further compounding the compliance concerns. With Uber and Rapido now facing the same six-month suspension, three major ride and bike-taxi aggregators have been penalised by the Chandigarh administration within a matter of months — a pattern that raises broader questions about regulatory compliance across app-based mobility platforms operating in the city.