Overview Of The Uttar Pradesh Motor Vehicle (Thirty-third Amendment) (Aggregator And Delivery Services Provider) Rules, 2026

On May 22, 2026, the Government of Uttar Pradesh notified the Uttar Pradesh Motor Vehicle (thirty-third Amendment) (Aggregator and Delivery Services Provider) Rules, 2026, which have inserted a new Chapter V-A into the Uttar Pradesh Motor Vehicles Rules, 1998 (“UPMV Rules”). The new chapter, titled the Uttar Pradesh Motor Vehicle (Aggregator and Delivery Services Provider) Rules, 2026 (“UP Aggregator Rules”), establishes a State-wide framework for the licensing and regulation of aggregators and delivery service providers (“DSPs”), and came into force 15 (fifteen) days after publication in the Official Gazette.

The regulation of aggregator services under the MV Act has evolved progressively over the last few years, beginning with the recognition of ‘aggregators’ under Section 2(1A) of the MV Act (introduced by the Motor Vehicles (Amendment) Act, 2019), and the mandatory State-level licensing requirement under Section 93. In furtherance thereof, the Ministry of Road Transport and Highways, Government of India (“MoRTH”) issued the Motor Vehicle Aggregator Guidelines, 2020 (revised in July 2025), which set out an advisory framework for State Governments to adopt while framing their aggregator rules. Whilst several States including Delhi, Maharashtra, Karnataka, Tamil Nadu and Telangana had, in the intervening period, notified their own aggregator schemes, Uttar Pradesh had, until now, continued to regulate app-based ride-hailing and delivery operations only through the general framework of the MV Act and the Uttar Pradesh Motor Vehicles Rules, 1998. The rapid proliferation of ride-hailing, food delivery, quick-commerce and hyperlocal delivery platforms across Tier-1 and Tier-2 cities in Uttar Pradesh (including Lucknow, Kanpur, Noida, Ghaziabad, Agra and Varanasi), coupled with regulatory concerns around passenger and driver safety, opaque fare-setting, driver welfare, data protection and vehicular pollution in the NCR districts, created a compelling case for a dedicated State-level regulatory framework. The UP Aggregator Rules represent the State’s response to this policy vacuum and, notably, extend to DSPs and, in part, to ‘e-commerce entities’, and not merely to passenger-transportation aggregators.

The key provisions of the UP Aggregator Rules are discussed below:

KEY DEFINITIONS:

Rule 125-B has introduced the following defined terms which are material for complying with the requirements prescribed under Chapter V-A:

a. “Aggregator” carries the meaning assigned under Section 2(1A) of the MV Act, i.e., a digital intermediary or marketplace connecting a passenger with a driver for the purpose of transportation.

b. “Delivery Service Provider” means any person or entity who either owns, operates, on-boards or manages a fleet of motor vehicles, whether through a digital or electronic facility or any other means, to connect a driver offering to deliver or pick up a product, courier, package or parcel with a seller, e-commerce entity or consignor.

c. “E-Commerce Entity” means any person or entity that owns, operates or manages a digital or electronic facility or platform for electronic commerce, but excludes any entity or business notified otherwise by the State Government.

d. “Grievance Redressal Officer cum Compliance Officer” means a full-time employee of the aggregator or DSP, holding a responsible position and a delegated power of attorney, who shall be the sole point of contact for the UP Transport Department and shall be responsible for redressal of driver and passenger grievances.

KEY PROVISIONS:

1. Applicability (Rule 125-C):

The UP Aggregator Rules apply to every aggregator, DSP and e-commerce entity that has on-boarded two-wheelers, three-wheelers (including e-rickshaws), four-wheeler passenger vehicles or buses (and, in the case of DSPs, any category of delivery vehicles) for operating within the State of Uttar Pradesh. Two categories of entities are expressly carved out: (i) entities which confine themselves to providing an interoperable network for licensed aggregators without directly engaging drivers or motor vehicles; and (ii) entities engaged in the business of selling tickets for travel by public service vehicles.

2. Licensing Regime (Rules 125-E to 125-H):

The State Transport Authority, Uttar Pradesh (“STA”) is the Competent Authority for grant of licences. All existing aggregators and DSPs are required to obtain a licence within 90 (ninety) days of notification of the UP Aggregator Rules, and all new aggregators and DSPs are required to obtain a licence prior to commencing operations within the State. The licence, once granted in Form SR-52, is valid for 5 (five) years and renewable for a further period of 5 (five) years. The prescribed fees include an application fee of INR 25,000 and a licence grant / renewal fee of INR 5,00,000. The security deposit ranges from INR 10,00,000 (for fleets of up to 100 buses or up to 1,000 other motor vehicles) to INR 50,00,000 (for fleets of more than 1,000 buses or more than 10,000 other motor vehicles), furnished in the form of a bank guarantee.

3. Eligibility and Conditions for Grant of Licence (Rules 125-I and 125-J):

The applicant is required to be a company, a limited liability partnership or a co-operative society, with a registered office in Uttar Pradesh, and must comply with the MV Act, the Digital Personal Data Protection Act, 2023 (“DPDPA”), the Consumer Protection Act, 2019 and the Information Technology Act, 2000 together with the intermediary rules made thereunder. The conditions for grant of licence include (i) arrangement of an induction training programme for drivers (only applicable to aggregators); (ii) minimum passenger insurance of INR 5,00,000 (only applicable to aggregators); (iii) an express prohibition on the aggregator restricting or preventing on-boarded drivers from operating with multiple aggregators (thereby codifying a non-exclusivity principle in favour of drivers); (iv) implementation of a two-way (driver and passenger) rating mechanism within the app (only applicable to aggregators); (v) appointment of a Grievance Redressal Officer cum Compliance Officer whose details are to be prominently displayed on the app and website; and (vi) commencement of business operations within 6 (six) months of grant of the licence, failing which the licence stands liable to cancellation.

4. Compliance in Relation to Drivers (Rules 125-K to 125-N):

Prior to on-boarding a driver, the aggregator is required to (i) mandatorily verify the driver’s Aadhaar with UIDAI; (ii) verify that the driver holds a valid driving licence and has a minimum of 2 (two) years’ driving experience; (iii) confirm that the driver has not been convicted in the preceding 3 (three) years of driving under the influence of alcohol or narcotics or any cognisable offence under the Bharatiya Nagarik Suraksha Sanhita, 2023 or the Bharatiya Nyaya Sanhita, 2023 (including offences involving fraud, sexual offences, violence and terrorism); (iv) arrange for a medical (including eyesight) examination and a psychological evaluation by a registered psychiatrist; and (v) obtain police verification of the driver’s character and antecedents at least 7 (seven) days prior to on-boarding. The aggregator is also required to ensure that every driver undergoes a 40-hour induction training programme covering, inter alia, first-responder training, defensive driving, familiarisation with the app, and gender and disability sensitisation. Drivers whose ratings fall below the fifth percentile are required to compulsorily undergo a quarterly refresher training programme, failing which they cease to be eligible to provide services through the aggregator. From a welfare standpoint, the aggregator is required to provide every driver with a health insurance cover of not less than INR 5,00,000 and an accidental / term insurance cover of not less than INR 10,00,000.

5. Compliance in Relation to Vehicles (Rules 125-P and 125-Q):

The aggregator is required to ensure that every on-boarded vehicle: (i) is validly registered as a transport vehicle and holds a valid fitness certificate, third-party insurance policy with passenger cover, PUC certificate and, where applicable, permit under the MV Act; (ii) is fitted with an AIS-140 compliant vehicle location tracking device with a panic button, integrated with the aggregator’s control room and with the State Government’s Integrated Command and Control Centre; and (iii) is equipped with a fire extinguisher, first-aid kit and functional speed governors. The aggregator is prohibited from on-boarding any vehicle which is more than 12 (twelve) years old. In respect of the NCR districts, Rule 125-Q(1)(h) hardwires the application of Direction No. 94 issued by the Commission for Air Quality Management in the National Capital Region and Adjoining Areas (“CAQM”), permitting only CNG / electric 3-wheeler autorickshaws to be inducted and prohibiting induction of new diesel or petrol ICE vehicles in the 4-wheeler LCV / LGV and 2-wheeler categories with effect from January 1, 2026.

6. Compliance in Relation to Website, App and Technology (Rule 125-R):

The aggregator’s app is required to be certified for vulnerability and cyber-security by a firm empanelled by CERT-In. Trip, passenger and fare data generated on the app is required to be stored for a minimum of 3 (three) months and a maximum of 12 (twelve) months, and made available to the UP Transport Department in accordance with due process of law and the DPDPA. The aggregator is also required to (i) publicly disclose the ratio of the driver’s share of fare, incentives and split-fare on its app and website; (ii) enable passengers to share their live location and to select a driver of the same gender (where drivers of both genders are on-boarded); (iii) integrate its app and website with the State Transport Portal; (iv) establish a 24x7 control room and a 24x7 call centre with English and Hindi language support; and (v) implement a strict zero-tolerance policy against use of narcotic substances or alcohol by drivers on duty, with immediate off-boarding pending inquiry.

7. Fare Regulation and Cancellation (Rules 125-U and 125-V):

The base fare notified by the State Government for the relevant category or class of vehicle shall be the chargeable base fare, applicable for a minimum of 3 (three) kilometres to compensate for dead mileage. The aggregator may apply dynamic pricing subject to a floor of 50% (fifty percent) and a ceiling of 150% (one hundred and fifty percent) of the base fare. In respect of drivers, a driver on-boarded with his own vehicle is entitled to not less than 80% (eighty percent) of the applicable fare, and, in respect of vehicles owned by the aggregator, the on-boarded driver is entitled to not less than 60% (sixty percent) of the applicable fare, with the balance being retained as apportioned fare. In respect of cancellations, penalties of 10% (ten percent) of the fare (capped at ?100) are imposed on the driver (for unjustified cancellation or delay beyond ten minutes of the expected reporting time) or on the passenger (for cancellation in contravention of the aggregator’s published guidelines).

8. Transition to Electric Mobility (Rules 125-X and 125-Y):

The aggregator is required to progressively increase the proportion of electric, alternative-fuel or zero-emission vehicles in its fleet by 5% (five percent) annually. In addition, aggregators and DSPs are required to comply with the electric-vehicle induction targets prescribed by CAQM Direction No. 94 for the NCR districts, and, for the rest of the State, achieve prescribed EV adoption targets ranging from 1% to 10% within the first six months of notification, scaling up to 15%–50% by the end of the fifth year, calibrated separately for passenger and goods vehicle categories.

9. Penalties, Suspension, Cancellation and Appeal (Rules 125-W, 125-AB, 125-AC and 125-AD):

Any aggregator or DSP operating without a valid licence, or whose licence has expired, been suspended or revoked, is liable to a fine of not less than INR 25,000 and up to INR 1,00,000, in addition to the penalties otherwise prescribed under the MV Act. The Competent Authority may, either suo motu or upon complaint, suspend the licence for up to 3 (three) months on grounds including failure to ensure passenger or driver safety, repeated fare-related violations and non-compliance with the UP Aggregator Rules. Where suspension is not considered feasible or desirable, the Competent Authority may, in lieu, impose a monetary penalty ranging from INR 1,00,000 to INR 1,00,00,000. Where a licence has been suspended thrice in a financial year and a further violation warranting suspension is committed, or where the aggregator has committed a violation of such serious nature that endangers passenger or driver safety, the Competent Authority may cancel the licence after issuing a show-cause notice and providing a hearing, and forfeit the security deposit. An aggrieved aggregator may prefer an appeal, within 30 (thirty) days, to the Principal Secretary, Transport, Government of Uttar Pradesh (or such appellate authority as may be notified), who is required to decide the appeal within 60 (sixty) days.

IMPLICATIONS AND ANALYSIS:

Expanded Regulatory Perimeter:

The UP Aggregator Rules significantly widen the State-level regulatory framework by expressly covering both aggregators and DSPs, and by also referring to e-commerce entities in the applicability provision. In terms of coverage, the Rules are broader than the MoRTH guidelines, as they extend to DSPs and, in part, to e-commerce entities, with the definition of “DSP” drafted expansively to capture any entity that on-boards, operates or manages a fleet of motor vehicles for connecting drivers with sellers, e-commerce entities or consignors. Given the broad definition of a DSP, this may bring within the licensing perimeter not only pure-play delivery platforms, but also food-delivery, quick-commerce and hyperlocal delivery platforms that operate their own delivery fleets within Uttar Pradesh.

2. Significant Compliance and Operational Readiness Requirements:

For entities classified as aggregators, the licence is only the starting point of compliance. The UP Aggregator Rules require a State-specific operating framework covering driver verification, police checks, medical and psychological assessment, induction and refresher training, insurance, vehicle authentication, app certification, 24x7 control-room and call-centre operations, grievance handling and real-time integration with government systems. Several of these requirements may materially affect onboarding timelines and operating costs at scale. For example, police verification must precede onboarding by at least seven days, each driver must undergo psychological evaluation by a registered psychiatrist, and the prescribed induction programme is 40 hours. Aggregators may therefore need to redesign onboarding workflows, engage qualified third-party service providers and maintain auditable records demonstrating continuing compliance, rather than relying only on contractual declarations from drivers or fleet partners.

Additionally, the requirement to make specified data available to the Transport Department in accordance with due process, including the DPDPA, will also require platforms to align regulatory data-sharing processes with their broader data-governance framework.

3. State-Specific Fare and Fleet Requirements:

Multi-State platforms will also need to implement Uttar Pradesh-specific pricing, settlement and fleet controls. The Rules cap dynamic pricing at 150% of the base fare and require a minimum 80% driver share, payable daily where the driver uses his or her own vehicle. Fleet planning is likely to require similar State-specific treatment: NCR operations remain subject to CAQM directions, while the rest of Uttar Pradesh is governed by the phased category-wise EV targets. At the same time, Rule 125-X separately requires aggregators to increase electric, alternative-fuel or zero-emission vehicles by 5% annually. However, the UP Aggregator Rules do not expressly state whether these two fleet-transition requirements are cumulative or how the annual 5% obligation should be measured against the category-wise EV targets, resulting in an implementation issue which requires further clarification.

4. Enforcement Exposure and Areas Requiring Clarification:

The drafting of certain provisions of the UP Aggregator Rules may also create interpretational challenges during implementation. For instance, the security-deposit provision is framed only with reference to an “aggregator”, even though the licensing process and prescribed forms extend to both aggregators and DSPs. Similarly, Rule 125-I limits eligible applicants to companies, LLPs and specified co-operative societies, whereas Forms SR-51 and SR-53 also contemplate an application by a "firm". Moreover, several provisions, including Rules 125-J, 125-R, 125-U and 125-V, are drafted around passenger-transport concepts such as fare, passenger safety, dynamic pricing and driver ratings, making their application to pure delivery models uncertain. Further, while the definition of “e-commerce entity” is broad, the substantive obligations under Chapter V-A are drafted primarily by reference to aggregators and, in certain cases, DSPs, with only limited express reference to e-commerce entities. Accordingly, the treatment of e-commerce entities, and the extent to which aggregator-specific operating standards may be expected to apply to DSPs, are also likely to require additional regulatory guidance and clarification.

5. Business-Continuity Risks:

From an enforcement standpoint, the consequences of non-compliance under the UP Aggregator Riles are potentially significant. The suspension and cancellation framework confers substantial discretion on the Competent Authority, with monetary penalty of up to INR 1,00,00,000 constituting a material enforcement lever. Additionally, the requirement to immediately cease operations upon suspension or cancellation, coupled with potential forfeiture of the security deposit, creates a direct business-continuity risk which should be reflected in internal compliance governance and escalation mechanisms. Given the compressed implementation timeline, the breadth of the operational obligations and the definitional ambiguities identified above, it is recommended that the regulated entities maintain a clear rule-by-rule compliance matrix, allocate internal responsibility for licensing, driver and vehicle compliance, pricing, technology, data and EV requirements, and closely monitor further directions issued by the Transport Department.

 Please find attached a copy of the UP Aggregator Rules here.