App-based rides hit in Chandigarh as Uber, Rapido licences suspended for 6 months

The Chandigarh Administration has suspended the licences of popular app-based cab services Uber and Rapido for six months. This action comes after the State Transport Authority (STA) found that both companies failed to meet essential regulations related to driver insurance, training, fare structures, vehicle eligibility, and other safety and operational norms.

Despite multiple chances, Uber and Rapido were unable to demonstrate compliance. This decision follows a similar crackdown on Ola and inDrive, which also had their licences suspended due to alleged violations of driver welfare and training. The regulatory action could significantly impact commuters in Chandigarh, Panchkula, and Mohali, especially daily office-goers and late-night travelers.

Issues with Uber include failure to implement the prescribed fare structure, charging higher fares than allowed, and operating non-commercial vehicles. Additionally, Uber's local office in Sector 47-C was closed or locked during inspections. Rapido faced similar problems, such as underinsurance, locked office in Sector 32-D, and overcharging complaints.

These companies have until September 1 to rectify their issues. The suspension of these licences aligns with ongoing tensions between regulators, transport aggregators, and drivers regarding fare structures and commissions.