Digital Desk, Busted. Difficulties for people traveling daily by cab in Chandigarh may increase. The State Transport Authority (STA) has suspended the aggregator licenses of Uber and Rapido for six months with immediate effect. According to the order issued on September 8, this action will remain effective till March 2027.
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After this decision, the availability of big cab aggregators in the city has become quite limited. Earlier, the licenses of Ola and InDrive have also been banned for six months. In such a situation, now four major cab services – Ola, Uber, Rapido and Indrive have come under the ban in Chandigarh.
Companies were given opportunities several times
The STA says Uber and Rapido were given enough time to comply with the provisions of the Chandigarh Administration's Motor Vehicle Aggregator Regulation, 2025. According to officials, companies also got several opportunities to improve the rules, but the expected compliance did not happen.
Officials also said that some private i.e. non-commercial vehicles were also included in the list of vehicles submitted by both the companies in July 2026. Operation of such vehicles for cab service is not permitted in Chandigarh.
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According to STA Secretary Nitish Singla, the companies had to follow rules related to health test of drivers, term insurance, training and fixed fares. Apart from this, complaints related to violation of rules against both the services had also reached the authority.
Demand to implement central rules also became the reason
According to officials, instead of following the rules of the Chandigarh administration, the companies had demanded the implementation of the Central Government's Motor Vehicle Aggregator Regulation, 2025 in the city. STA took the decision to suspend the license on the basis of this and other violations.
Now the options for cab passengers in the city are much less than before. Currently, Bharat Taxi of Sahakari Taxi Cooperative Limited remains the major available cab service. In such a situation, regular travelers may have to depend more on local transport and other means for commuting. At present, after this six-month ban, the biggest question is how the transportation needs of the people traveling by cabs in Chandigarh daily will be met.