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The Uttar Pradesh transport department has proposed new regulations for app-based taxi services like Ola and Uber. Drivers cancelling rides without valid reasons may face a 10% fare deduction, while passengers cancelling rides could also pay penalties.
UP Draft Policy Targets Ride Cancellations on Ola, Uber with Fines and Passenger Relief
Lucknow: The Transport Department has issued a proposal for new regulations to regulate app-based taxi and delivery services in Uttar Pradesh. Under the "Uttar Pradesh Motor Vehicles (Aggregators and Delivery Service Providers) Rules, 2026," drivers on aggregator platforms like Ola and Uber will no longer be able to cancel rides without a valid reason. If a driver cancels a ride after it has been booked without reason, 10 percent of the total fare will be deducted from the driver's payment.
According to the new proposal, if a driver cancels a ride without reason, the passenger will be given some concession on the next booking. However, if the passenger cancels a self-booked ride, they will also be fined. In such cases, 10 percent of the total fare, or up to a maximum of ₹100, may be charged during the next booking.
According to the proposed regulations, all aggregator platforms, delivery service providers, and e-commerce-related transportation services operating in the state will be required to obtain a license. Companies will have to apply online for this. An application fee of ₹25,000 and a license fee of ₹500,000 will be required.
In addition, companies will be required to deposit a security deposit ranging from ₹10 lakh to ₹50 lakh, depending on the number of vehicles. According to the proposal, the validity of this license will be for five years.
The new regulations also prioritize the safety of passengers and drivers. Companies will be required to provide insurance coverage of at least ₹5 lakh for passengers. Health insurance of ₹5 lakh and accident insurance coverage of ₹10 lakh have been made mandatory for drivers.
Aadhaar verification, police character certificate, and at least two years of driving experience will be required for driver selection. Additionally, 40 hours of training will be mandatory before joining the platform.
According to the proposed rules, all vehicles connected to the platform will be required to have a valid registration, fitness certificate, insurance, pollution certificate, and GPS tracking system. Vehicles older than 12 years will not be allowed on these platforms.
The Transport Department states that the implementation of the new regulations will increase transparency in app-based taxi services, strengthen passenger safety, and ensure better protection of the interests of both drivers and customers. Currently, the department has sought suggestions and objections from the general public and stakeholders on this proposal within 30 days.
