The UT Administration is planning to introduce detailed guidelines for mobile app-based motor vehicle aggregators in Chandigarh.
The Chandigarh Administration Motor Vehicle Aggregator Rules, 2025, is expected to be officially notified this week. These new policy aims introduce fare control, operational safety, and raise safety standards across the aggregator network.
The new rules will introduce both minimum and maximum fare limits, putting a clear cap on surge pricing. According to the draft policy, the city taxi fare will be linked to the Wholesale Price Index (WPI) for the current year and will serve as a base fare. app-based cab serviceswill be allowed to offer fares up to 50 per cent below the base fare, but can’t charge more than 1.5 times the base fare during peak hours. The base fare will apply to the first 3 km, including the cost of fuel and the distance the driver travels to reach the passenger. The idea is to ensure fair pricing and prevent passengers from being overcharged.
The new rules also ban the use of private vehicles for aggregator services, a long-standing concern, especially with some operators using dual vehicles that aren’t registered for commercial use. In addition, 2 per cent of the fare per ride may be directed to the state exchequer through future notifications to support public transport infrastructure and related amenities.
To strengthen passenger safety, particularly for women, the new regulations require app-based cab services to set up a 24/7 call centre, offer ride pooling options, and integrate electric vehicles into their fleets, and strict compliance with operational guidelines, including maintaining a minimum fleet size requirements, to ensure reliable and safe service.
While the new policy aims to formalise and streamline the functioning of app-based cab services, members of the Tricity Cab Association (TCA) are holding a protest outside the State Transport Authority (STA) office in Sector 18. The members of the TCA have been holding protests since June 16, accusing officials of overlooking their concerns and delaying meaningful dialogue on the issue.
TCA chairman Vikram Singh said their pleas regarding lack of clarity on licensing, commission structures and private vehicle operations have been ignored.
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