The Chandigarh administration has taken decisive and strict action regarding passenger safety and repeated violations of transport regulations. The Union Territory's Transport Department has suspended the commercial operating licenses of major aggregator companies 'Uber' and 'Rapido' for six months, effective immediately. Following this order, cab and bike-taxi booking services via these platforms have been completely halted in the city.
According to the official notification issued by the administration, both companies face serious allegations of failing to comply with the Aggregator Guidelines of 2020. Despite repeated notices, the companies failed to meet safety standards—such as controlling surge pricing and installing mandatory GPS and emergency panic buttons in vehicles. Additionally, the commercial use of two-wheelers without valid permits was a primary reason for the suspension.
This sudden move has caused significant inconvenience to thousands of daily commuters in the city. People heading to offices and colleges, especially during peak hours, are now forced to rely on public transport or auto-rickshaws. Meanwhile, the livelihoods of thousands of drivers and riders associated with Uber and Rapido are suddenly at risk, prompting them to appeal to the administration against the decision.
Local auto-rickshaw and traditional taxi unions have welcomed the administration's decision. They argue that these app-based companies were harming the business of local drivers by operating illegally and employing unfair pricing strategies. This firm stance by the administration sends a clear message to other commercial transport services that non-compliance with regulations will not be tolerated under any circumstances.
The suspended companies have assured that they will explore legal options against the order and engage in dialogue with the administration to reach a resolution as soon as possible. The companies state that they are prepared to meet safety standards and comply with all conditions laid down by the administration. However, unless the suspension is revoked or relief is obtained from the court, these services are bound to remain stalled in the Tricity area.