Chandigarh Bans Uber and Rapido for Six Months As Ashok Calls the Move Misguided

Chandigarh Transport Authority has suspended the licenses of Uber and Rapido for six months due to rule violations, prompting former bureaucrat Ashok Khemka to criticize the move over livelihood concerns.

Citing non-compliance with established norms and regulations, the Chandigarh Transport Authority has suspended the operating licenses of major cab aggregators Uber and Rapido for a period of six months. Consequently, cabs operated by these platforms will remain off the roads across the city for the next half-year. While the administration views this as a necessary step for regulatory enforcement, the sudden cessation of services has created substantial commuting difficulties for ordinary residents who relied on these networks for daily travel.

Ashok Khemka Criticizes the Decision
The administrative action has drawn sharp criticism from prominent figures, including former Haryana civil servant Ashok Khemka. Taking to the platform X, Khemka termed the restriction on Uber, Rapido, and other aggregators as an ill-conceived decision. He pointed out that such abrupt bans cause direct inconvenience to the general public by removing affordable and convenient transit options from the urban landscape.

Impact on Drivers and Management Accountability
Khemka further emphasized that the restriction goes beyond commuter inconvenience, directly threatening the livelihoods of thousands of drivers associated with these platforms. Arguing for a more balanced approach, he stated that if aggregators have violated regulations, the authorities should penalize the corporate entities and hold their management accountable through financial penalties rather than penalizing innocent drivers and passengers. He urged the Chandigarh administrator to intervene in the matter, reiterating that punitive measures should target the actual wrongdoers rather than disrupting the broader ecosystem.

Cab Union Calls Off Longstanding Protest
Following the punitive action against Uber and Rapido, the Chandigarh Cab Union announced the withdrawal of its continuous strike and dharna on Wednesday, marking the conclusion of a prolonged agitation against aggregator practices.

Union President Amandeep Singh noted that Wednesday marked the 100th day of their demonstration. He highlighted that several key demands concerning driver welfare remain unaddressed, including a medical insurance cover of Rs 600,000, a term insurance of Rs 1 million, and the establishment of a 24-hour operational local office by aggregator companies in Chandigarh. The union has been pressing for medical insurance provisions for over a year and three months without compliance from the corporate management.

Prior Suspctions in the City
The recent action against Uber and Rapido follows a series of similar suspensions by the Chandigarh Transport Authority against other prominent transport networks. Ola's license was suspended earlier on June 17, followed by InDrive on August 10. With successive restrictions on major aggregators, Bharat Taxi operated by the cooperative taxi cooperative limited remains the sole functional cab service operating within the city at present.

What this means for you
The six-month suspension of major cab aggregators in Chandigarh directly affects daily commuters and threatens the daily earnings of thousands of registered drivers.

• Across India: Regulatory scrutiny and compliance enforcement on app-based cab aggregators could intensify in other metropolitan areas and transit hubs.
• In Chandigarh: Residents must rely on alternative transit options while drivers face immediate livelihood disruptions following the closure of major booking platforms.

Why this happened
The punitive action by the Chandigarh Transport Authority stems from persistent non-compliance and regulatory violations by the operating companies.

• Regulatory Breaches: The administration found that the aggregator platforms failed to adhere to mandated transport norms and operational guidelines.
• Union Pressure: Local cab unions had staged a 100-day protest demanding strict administrative action against aggregator policies and practices.
• Prior Precedents: The transport authority had previously suspended the licenses of competing platforms like Ola and InDrive earlier in the year.

Questions & Answers

1. For how long have Uber and Rapido been banned in Chandigarh?
The Chandigarh Transport Authority has suspended the licenses of Uber and Rapido for six months.

2. Which former bureaucrat criticized the ban?
Former IAS officer Ashok Khemka criticized the decision, calling it an ill-conceived move.

3. When did the cab union end its protest?
The Chandigarh Cab Union called off its protest on Wednesday after marking its 100th day of agitation.

4. When were Ola and InDrive licenses suspended in the city?
Ola's license was suspended on June 17 and InDrive's license on August 10.

5. Which taxi service remains operational in Chandigarh currently?
Only Bharat Taxi operated by the cooperative taxi cooperative limited remains functional in the city.

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