In a major crackdown on app-based taxi operators, the Chandigarh Administration on Wednesday suspended the aggregator licence of ANI Technologies Pvt Ltd, popularly known as Ola Cabs, with immediate effect for a period of six months, effectively barring Ola-operated cabs and bike taxis from functioning in the Union Territory till December.
In an order issued this evening, the State Transport Authority directed all vehicle owners attached to the Ola platform not to operate or accept ride bookings through the application within Chandigarh. The administration warned that any vehicle found violating the order would face challan and impounding, while commuters have been advised not to book rides through the Ola app and instead use other registered aggregators.
The development comes at a time when the Tricity’s app-based transport sector has already been witnessing turbulence. Over the past week, drivers associated with Ola, Uber and InDrive had launched a series of protests and partial strikes across Chandigarh, Mohali and Panchkula, affecting an estimated 50,000 daily commuters. The drivers were demanding implementation of Chandigarh’s Aggregator Policy, revision of fares from Rs 25 to Rs 35 per kilometre and stricter regulation of app-based operators.
The agitation, led by cab driver unions, saw drivers refusing bookings during designated hours and warning of intensified protests if their demands remained unaddressed. Union representatives had alleged that despite notification of the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025, effective enforcement remained pending and drivers continued to struggle with rising fuel prices, commissions charged by aggregators and increasing operational costs.
The suspension of Ola’s licence is being viewed as one of the strongest regulatory actions taken under Chandigarh’s evolving aggregator framework. The 2025 rules were introduced to regulate app-based taxi services, ensure passenger safety, fix fare norms and define the revenue-sharing mechanism between drivers and aggregators. The rules also mandate various safety and compliance measures for aggregator companies operating in the UT.
While the administration has not yet publicly detailed the specific grounds behind the six-month suspension, the move is expected to significantly impact Ola’s presence in the Tricity market, where Uber and InDrive have emerged as major competitors in recent years.
For commuters, the immediate fallout could be reduced ride availability during peak hours, especially if driver protests continue. The administration has urged residents to rely on alternative authorised transport platforms and public transport services to avoid inconvenience.
The suspension is likely to trigger wider debate over the implementation of Chandigarh’s aggregator policy, the regulation of app-based mobility services and the future of thousands of drivers dependent on digital ride-hailing platforms in the Tricity region.
