UP govt to roll out its first-ever policy to regulate app-based cabs
LUCKNOW, Feb. 5 -- The UP government is developing a dedicated web portal to bring app-based motor vehicle aggregators (such as Ola, Uber, Rapido, etc) under a formal regulatory framework.
This initiative aims to streamline the licensing of two-wheeler and four-wheeler taxi services, regulate surge pricing and ensure passenger safety, particularly for women, as the state moves towards framing and implementing its own aggregator policy aligned with the Centre's Motor Vehicle Aggregator Guidelines, 2025.
The UPDESCO has been assigned the task to develop the web portal. The government on Monday issued a GO, releasing more than Rs 1.42 crore as advance to the agency for the work.
"UP is drafting its first-ever policy to regulate aggregators in the state. The policy will largely be based on the Centre's Motor Vehicle Aggregator Guidelines issued in June-July 2025 with a few possible deviations allowed to states," said transport commissioner Kinjal Singh.
The proposed digital platform will act as a comprehensive regulatory and compliance monitoring system, enabling registration, licensing, fee payments, data sharing and real-time oversight of aggregators operating across the state.
Officials said once the UP policy is formally notified, no aggregator would be allowed to operate without obtaining a licence through the portal against a prescribed fee. The platform is also expected to integrate grievance redressal mechanisms, safety compliance and operational reporting.
"One major point we are examining while drafting our own policy is whether private two-wheelers being used for commercial ride services, such as those operating under bike-taxi platforms like Rapido, should be classified as commercial vehicles and mandated to carry yellow number plates. The move is aimed at bringing clarity in regulation, ensuring safety and insurance compliance," Singh said.
The state government, according to another official, is also considering provisions to impose financial penalties on aggregators for ride cancellations, made from their end, without logical or valid reasons, a step intended to protect passengers from inconvenience and ensure greater accountability of digital mobility platforms.
The initiative follows the Union ministry of road transport and highways notifying the Motor Vehicle Aggregator Guidelines, 2025, which laid down a comprehensive regulatory framework for ride-hailing and digital mobility platforms across the country. The guidelines mandate that aggregators must obtain licences from states, comply with data protection and consumer laws and adhere to specified safety and operational standards. Under the central policy, aggregators are required to ensure driver training covering road safety, customer behaviour, emergency response and gender/disability sensitivity.
The guidelines also provide for fare regulation, allowing dynamic pricing within limits, with caps on surge pricing to prevent passenger exploitation during peak demand.
In recent amendments, the Centre further strengthened consumer-centric provisions by allowing passengers to tip drivers voluntarily after the completion of rides, with the full amount to be transferred directly to drivers without any deductions by aggregators. Another key feature introduced was the option for passengers to choose drivers of the same gender through in-app settings, subject to availability, aimed particularly at enhancing safety and comfort for women commuters.
Officials said UP's proposed web portal would help effectively enforce these central norms at the state level, ensure transparency in aggregator operations and enable closer monitoring of compliance related to fares, safety standards, driver credentials and service quality....
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