New strict rule for Ola-Uber in UP: If the ride is canceled without giving reason, there will be a 10% deduction, know complete details

Lucknow : Strict rules are now going to be implemented on app-based cabs (Ola, Uber) and delivery services (Zomato, Swiggy etc.) in UP. The Transport Department has released the draft of Uttar Pradesh Motor Vehicles (Agglomeration and Delivery Service Providers) Rules, 2026. Its objective is to bring transparency in services, increase the safety of passengers and prevent arbitrariness.

Cancellation penalty on both driver and passenger

– If the driver cancels without a valid reason after accepting the ride, 10% of the total fare (up to a maximum of Rs 100) will be deducted. This amount will be deducted by the company.
– At the same time, if the passenger cancels the ride after booking it, a deduction of 10% or a maximum of Rs 100 will be made in the next booking.
– This will bring responsibility on both the parties and prevent unnecessary cancellations.

New rules of license and fees

– It will be mandatory for all aggregator platforms (Ola, Uber etc.), delivery services and e-commerce transport to obtain license in the state.
– Rs 25,000 application fee + Rs 5 lakh license fee for online application.
Depending on the number of vehicles, a security deposit of Rs 10 lakh to Rs 50 lakh will have to be deposited.
– The validity of the license will be 5 years.

Strict provisions on safety and driver selection

Insurance cover of at least Rs 5 lakh is mandatory for passengers.
– 5 lakh health insurance + 10 lakh accident insurance for drivers.
– Driver to choose from: Aadhaar verification, police character verification, minimum 2 years driving experience.
– It is necessary to give 40 hours of training before connecting to the platform.
– For vehicles: Valid registration, fitness certificate, insurance, PUC, GPS tracking mandatory.
– Vehicles older than 12 years will not be included on the platform.

What does the department say?

The Transport Department says that these rules will strengthen the safety of passengers, bring transparency in services and curb complaints from both driver and passenger. Suggestions/objections have been sought on the draft from the general public, companies and concerned parties within 30 days.