CHANDIGARH, 24 June — The Chandigarh Administration is preparing to roll out a new regulatory framework for app-based cab aggregators in the city, aiming to curb overcharging, standardise fares, and ensure passenger safety. The Chandigarh Administration Motor Vehicle Aggregator Rules, 2025 are expected to be formally notified later this week.
The upcoming rules will introduce minimum and maximum fare limits for rides, with strict controls on surge pricing. According to the draft policy, the base fare will be pegged to the current year’s Wholesale Price Index (WPI) and will include the first 3 kilometers of the ride—factoring in the fuel and distance covered by the cab in reaching the pickup point.
Aggregators will be permitted to charge fares up to 50% below the base and no more than 1.5 times above it during peak demand. “This is intended to curb overcharging and bring transparency to ride fares,” a senior UT transport official said.
A key provision bans the use of private vehicles for aggregator services — a common loophole exploited by operators. Only vehicles with valid commercial registration will be allowed on aggregator platforms. The rules also propose that 2% of every fare may be allocated to the state exchequer in future, through notifications, to fund transport-related infrastructure and public amenities.
Passenger safety, particularly for women, is a prominent focus. The rules require aggregators to establish 24/7 call centres, offer ride pooling options, integrate electric vehicles into their fleets, and maintain compliance with operational standards, including minimum fleet size thresholds.
While the regulations are being framed to streamline operations and protect consumer interest, they have triggered backlash from local operators. Members of the Tricity Cab Association (TCA) have been staging protests outside the State Transport Authority (STA) office in Sector 18 since June 16, alleging that their demands are being ignored.
“Our repeated appeals on licensing, commission caps, and the rampant use of private vehicles have gone unanswered,” said Vikram Singh, chairman of the TCA. “We support regulation, but it must be done in consultation with us. Right now, there’s no clarity on how these rules will be enforced on the ground.”
The administration has not yet responded formally to the protest, though officials say efforts are underway to balance the interests of aggregators, passengers, and traditional cab operators.
As Chandigarh readies to become one of the few Indian cities with a comprehensive aggregator policy, all eyes are now on how effectively the rules will be implemented — and whether they will ease friction between stakeholders or deepen the divide.
