Four firms get notice for violating Chandigarh vehicle aggregator policy

The State Transport Authority (STA) today issued show-cause notices to cab aggregator companies Ola, Uber, Rapido and InDrive for violating the provisions of the Chandigarh Motor Vehicle Aggregator Policy-2025. The department warned that their licences could be suspended or cancelled if they failed to reply within 15 days.

The action came after a series of inspections at the offices of the four companies revealed irregularities and lack of compliance with mandatory conditions. According to the STA, it is compulsory for every aggregator company operating in the city to maintain a functioning office within Chandigarh limits. However, the inspection teams found that several of these companies had either shut down their offices or were functioning without proper infrastructure and staff.

During the inspection, it was found that Ola had vacated its office around six months ago, while there was no office on the premises listed by Uber. Rapido’s office was found locked during the visit, and InDrive had just one employee present who failed to answer the queries of the inspecting committee and lacked infrastructure.

The STA, in its notice issued by Secretary Amit Kumar, stated that such violations amounted to a clear breach of licence conditions.

The notices were issued after the STA was flooded with complaints from cab and taxi drivers from the Tricity area, who alleged that the aggregator companies were not implementing the revised fare structure notified by the UT Administration on July 7 this year.

For the first time under the policy, the Administration has merged the fares charged by AC and non-AC taxis. Also, the authorities have allowed the operators to charge flat fare for the first 3 km, fixing the minimum fare at Rs 90. The policy also stated that drivers should receive 90% of the ride fare.

Drivers also accused the companies of failing to provide mandatory facilities such as health and term insurance, as well as training sessions mandated under the policy. The STA’s notices specifically mention these violations, citing multiple complaints from drivers and other sources. “Strict action will follow if they fail to comply with the directions,” an STA official said.

Chandigarh