App-based ride bookings in UP to face stricter regulation; Yogi government keeping a close watch on fares

Through a notification issued on May 22, 2026, the Uttar Pradesh Government has implemented the Uttar Pradesh Motor Vehicles (Aggregator and Delivery Service Provider) Rules, 2026. The rules prescribe norms relating to applications, licensing, security deposits and operations for aggregators and delivery service providers. The framework is significant for services operated through digital or electronic platforms that either provide passenger transport facilities or connect drivers with vendors, e-commerce entities or consignors for the delivery of products, couriers, packages or parcels. App-based passenger transport as well as delivery and logistics networks are covered under its ambit, a release said.

Under the new policy, aggregators will be required to follow a prescribed process for operations. An application fee of Rs 25,000 and a licence fee of Rs 5 lakh have been fixed. This will create a clear and formal regulatory framework for operating aggregator services.

The arrangement will benefit both the government and companies by providing clear guidelines on rules, safety standards and service quality, while enabling the Transport Department to monitor aggregator services through a structured mechanism, the release added.

The policy links security deposit requirements to the size of the vehicle fleet. Under the rules, a security deposit of Rs 10 lakh has been prescribed for fleets of up to 100 buses or 1,000 other motor vehicles; Rs 25 lakh for fleets of up to 1,000 buses or 10,000 other motor vehicles; and Rs 50 lakh for fleets exceeding 1,000 buses or 10,000 other motor vehicles. This is expected to enhance accountability among large-scale aggregators.

The security deposit provision is significant in ensuring that regulatory action can be taken effectively in the event of violations of licence conditions or of the Motor Vehicles Act and rules.

Passenger safety has been given prime importance in the Yogi Government's new policy. Drivers associated with aggregators will undergo character verification, police verification and psychological testing. In addition, refresher training programmes will be conducted periodically for drivers.

The new framework places equal emphasis on driver welfare alongside passenger welfare. Aggregators will be required to provide insurance coverage for every passenger. Provisions have also been made for Rs 5 lakh health insurance and Rs 10 lakh term insurance for drivers. This provision is expected to serve as an important social security cover for drivers. A large number of drivers work in app-based transport and delivery services, and in situations such as accidents, illness or untimely death, this insurance cover will provide economic support to their families.

The policy also introduces important provisions regarding passenger fares. In cases where fares are increased through dynamic pricing, aggregators will be permitted to charge a maximum of 50 per cent above the prescribed base fare. This will help control excessive fare increases during periods of high demand. Passengers will get greater clarity about the actual cost of the service and the maximum fare, while aggregators too will have a clear ceiling for pricing.

To safeguard passengers' convenience and save time, a penalty of Rs 100 has been prescribed if a driver fails to pick up a passenger within the stipulated time after accepting a trip booking. The policy further provides that the benefit arising from this penalty will be passed on to the passenger in the next trip. This is expected to help curb the problem of drivers cancelling trips or failing to arrive for pickup without valid reason after accepting a booking, while giving due importance to the passenger's time and convenience.

Every aggregator will be required to appoint a Grievance Redressal Officer to address passenger complaints. This will provide passengers with a structured mechanism for lodging and resolving complaints related to fares, bookings, drivers, services or other issues. Penalty provisions have also been introduced for violations of licence conditions and of provisions under the Motor Vehicles Act and the Rules. This will increase accountability in the operations of aggregator companies and help the Department ensure compliance with the rules.

The policy gives special attention to the National Capital Region (NCR). A portal-based monitoring mechanism has been developed to continuously track air pollution generated by vehicles operating in aggregator fleets. This will particularly help control vehicular pollution in the NCR region.

The policy also emphasises the transition of aggregator fleets towards electric vehicles, facilitating a gradual shift from petrol- and diesel-powered vehicles to battery-operated alternatives. This will help increase the share of electric vehicles in transport and delivery services and reduce pollution in the coming period. This initiative holds particular significance for Uttar Pradesh's NCR areas, where a large number of cabs, delivery vehicles and other commercial vehicles operate. Portal-based monitoring will also enable the government to obtain more organised information about the status of vehicle fleets and their regulatory compliance.

One of the key advantages of the new Aggregator Policy is that it creates a clear framework for all stakeholders in this sector.

The government and Transport Department will gain a digital mechanism for monitoring aggregator companies and their vehicles, ensuring compliance and controlling pollution. Companies will benefit from clarity regarding licensing, fees, security deposits and operational standards. This is expected to curb the tendency of running services in an unregulated manner and help develop an organised transport market.

Drivers will receive enhanced security and social welfare through character verification, training, refresher training, health insurance and term insurance provisions. Passengers, meanwhile, will benefit from verified drivers, insurance coverage, fare caps, grievance redressal mechanisms and compensation for failed pickups after booking.

The UP My Fleet portal (upmyfleet.com) is playing a crucial role in implementing the new policy. According to official documents, the aggregator portal is currently operational, with two aggregators from the NCR region and their 3,15,218 vehicles onboarded.

Through this digital mechanism, the government will build a structured database of vehicles linked to aggregator services. This will help in tracking compliance with the rules, monitoring vehicle pollution, and tracking the fleet's transition to electric mobility. (ANI)