The Uttar Pradesh Transport Department has unveiled the draft Uttar Pradesh Motor Vehicle (Aggregator and Delivery Service Provider) Rules, 2026, establishing a comprehensive regulatory framework for app-based ride-hailing platforms, delivery services, and e-commerce logistics operators across the state.
These proposed rules aim to foster safer, more transparent, and better-regulated services, addressing critical areas such as passenger safety, driver welfare, pollution control, the promotion of electric vehicles, transparent fare structures, and efficient grievance redressal mechanisms.
New Provisions for Cancellations and Fares
Under the draft regulations, stringent measures are outlined for ride cancellations:
- Driver Cancellations: Drivers who cancel a confirmed booking without a valid reason will face a penalty equivalent to 10 percent of the fare.
- Passenger Cancellations: Passengers canceling a ride after booking will incur a maximum charge of 10 percent of the fare, capped at ₹100. This charge will be recovered during their subsequent booking.
The department has invited objections and suggestions from the public and other stakeholders on these draft rules within 30 days, indicating a period for public consultation before finalization.
Mandatory Licensing and Financial Requirements
A significant aspect of the new framework is the mandatory licensing for all aggregator platforms, delivery service providers, and transport services associated with e-commerce operating within Uttar Pradesh. Companies will be required to apply online and fulfill specific financial obligations:
- Application Fee: A non-refundable application fee of ₹25,000.
- Licence Fee: A licence fee of ₹5 lakh.
- Security Deposit: A security amount ranging from ₹10 lakh to ₹50 lakh, which will vary based on the number of vehicles operated by the aggregator.
The proposed validity for these licences is five years. Additionally, a dedicated aggregator portal, upmyfleet.com, has been launched to facilitate these processes.
Goals of the New Regulations
The overarching goals of the Uttar Pradesh government with these new rules include ensuring fairer practices for both drivers and passengers, encouraging the adoption of electric vehicles to combat pollution, and providing a clear, time-bound system for resolving complaints and disputes within the app-based service sector.