Policy · Mobility & Logistics

Chandigarh suspends Ola Consumer licence for six months

By Startup Enthusiast · 18 June 2026

What they do

Ola Consumer runs a cab and bike-taxi booking platform in India

Chandigarh STA suspended its licence for six months over rule violations

Ola earlier faced a similar suspension in Karnataka in 2019

The Chandigarh State Transport Authority (STA) suspended Ola Consumer's cab aggregator licence for six months, effective June 17, 2026.
The suspension followed numerous complaints of violating the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025.
STA issued a public notice advising commuters not to book rides through the Ola app.
STA warned cab and bike-taxi operators to stop using the Ola platform immediately; violators face fines and vehicle impoundment.
Cab drivers complained that Ola failed to provide mandatory health insurance, term insurance, and digital training.
Ola violated notified fare structures by requiring operators to make prepaid recharges to receive bookings.
Ola failed to reply to a show-cause notice issued October 2025 despite requesting a 15-day extension.
A further show-cause notice issued May 2026 also went unanswered, and Ola representatives did not attend a May 2026 compliance meeting.

An STA inspection committee visited Ola's registered Chandigarh office three times in May 2026 and found it vacated a year earlier without notifying the administration.
The committee recommended strict action for non-compliance despite repeated opportunities.
Ola earlier faced a six-month suspension of its aggregator licence in Karnataka in 2019 for violating bike taxi regulations.
Around the same time, Ola faced Karnataka government scrutiny over convenience fees for value-added services.
Early backer Vanguard marked down its Ola investment, valuing the startup at $70 million — nearly a 99% cut from its peak $7.3 billion valuation.

Ola Consumer operates a cab and bike-taxi booking platform in India.
Ola Consumer turned free cash-flow positive and achieved profitability in Q4 FY26.
It undertook cost-cutting and operational-efficiency measures over the past year to achieve those results.
The company is aiming for EBITDA breakeven in FY27.