Chandigarh to regulate app-based cab aggregators

The UT Administration will soon implement comprehensive regulations for mobile app-based motor vehicle aggregators in the city.

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The Chandigarh Administration Motor Vehicle Aggregator Rules, 2025, expected to be formally notified this week, are aimed at bringing a fare control, operational discipline and enhanced safety standards to the aggregator ecosystem.

The new rules will set up minimum and maximum fare limits, with a cap on surge pricing. As per the draft policy, the city taxi fare indexed to the Wholesale Price Index (WPI) for the current year will serve as the base fare. Aggregators will be allowed to charge as low as 50% below the base fare and a maximum of 1.5 times the base fare as surge pricing. The base fare will cover 3 km, accounting for fuel and distance travelled in reaching the passenger, a move aimed at discouraging overcharging.

The rules also prohibit the use of private vehicles under aggregator services, a concern often raised with operators running dual vehicles not registered for commercial use. Additionally, 2% of the fare per ride may be directed to the state exchequer via future notifications to support transport-related public amenities and infrastructure.

To enhance passenger safety, especially for women, the regulations mandate a 24/7 call centre, ride pooling options, integration of electric vehicles and strict compliance with operational norms, including minimum fleet size requirements.

Cab drivers’ protest enters second week

While the policy promises to formalise and streamline aggregator operations, protests by the Tricity Cab Association (TCA) outside the State Transport Authority (STA) office in Sector 18 has intensified. Members of the TCA have been protesting outside the STA office since June 16, accusing officials of ignoring their concerns and delaying a dialogue.

The TCA chairman, Vikram Singh, stated that their pleas regarding licensing clarity, commission structures and private vehicle operations have gone unheard.