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Chandigarh has suspended the aggregator licences of Uber India Systems Pvt Ltd and Rapido for six months, further reducing the number of app-based cab services authorised to operate in the city.

The State Transport Authority (STA) took the action over alleged violations of the Chandigarh administration's Motor Vehicles Aggregators Rules, 2025 and licence conditions. The order cites issues including non-compliance with prescribed fares and the alleged use of non-commercial vehicles, reported Hindustan Times.

The latest suspensions follow similar action against Ola and inDrive, meaning licences of all major cab aggregators operating in Chandigarh now stand suspended. The move could affect nearly one lakh city residents who use app-based cabs daily.

Why Has Chandigarh Suspended Uber And Rapido?

According to the order issued by STA Nitish Singla, Uber and Roppen Transportation Services, which operates Rapido, had received repeated notices over alleged violations of the rules and conditions attached to their licences.

The companies were given opportunities to respond and submit documents, but their replies were not considered satisfactory, according to the order.

The action also refers to allegations involving the operation of non-commercial vehicles through aggregator platforms.

The suspensions come after months of protests by drivers' groups in the Chandigarh tricity. The Chandigarh Tricity Driver Union and Jai Durga Auto-rickshaw Welfare Association had been protesting for nearly 100 days, including a 16-day hunger strike.

The drivers ended the hunger strike on Tuesday following the latest action against the aggregators.

Drivers' Main Grievance: Fares And Deductions

A major point of contention has been the implementation of the fare structure notified under Chandigarh's aggregator policy.

Tricity cab drivers' union president Amandeep Singh said drivers had pushed for the aggregator policy, which was notified in 2025 and included prescribed fares for cabs and autos.

According to Singh, a cab fare of Rs 25 per kilometre and an auto fare of Rs 13 per kilometre was fixed in July 2025.

He alleged that drivers were not receiving the prescribed amounts and that commissions and service charges charged through aggregator platforms were further reducing their earnings.

Singh claimed drivers could face a 20% commission along with an additional 10% service charge. He questioned how drivers could earn adequately if such deductions were made from the notified fares.

What Benefits Does The 2025 Policy Provide?

The drivers' union has also raised concerns about the benefits and protections prescribed under the aggregator policy.

Singh said drivers associated with aggregators were supposed to undergo medical check-ups every six months. The policy also provided for medical insurance of Rs 6 lakh, with a 5% annual increase, and term insurance of Rs 10 lakh, also subject to a 5% annual increase, according to him.

Vehicle eligibility has emerged as another issue.

The union alleged that white-plate, non-transport vehicles were being attached to aggregator platforms and used for passenger services despite such vehicles not being permitted under the policy.

Drivers Want Suspended Apps Blocked

The latest action has been welcomed by driver representatives, but they want the administration to ensure that suspended platforms cannot continue operating through their apps.

Tricity cab drivers' welfare association president Vikram Singh Pundir said the suspensions would have limited impact if the platforms remained accessible to drivers and passengers in Chandigarh.

Ola was suspended on June 17, followed by inDrive, Pundir said. He called for suspended companies to be geo-blocked within Chandigarh so that they cannot continue operating despite the regulatory action.

What Can Chandigarh Commuters Use Instead?

With the major app-based cab aggregators now facing suspension, commuters will have fewer options for booking cabs through these platforms.

Bharat Taxi is currently operational, according to the information provided by the drivers' groups.

Passengers can also find taxis at established pick-up points, including inter-state bus terminals, railway stations, shopping malls, markets, institutions and popular food outlets.