UP Caps Dynamic Fares, Mandates Insurance

The Yogi Government in Uttar Pradesh has implemented the Uttar Pradesh Motor Vehicles (Aggregator and Delivery Service Provider) Rules, 2026, to make transport and delivery services safer and more organised.

The new framework, which was notified on May 22, 2026, lays down standards for passenger safety, driver welfare, vehicle pollution monitoring, and fare transparency.

The rules prescribe norms for applications, licensing, security deposits, and operations for aggregators and delivery service providers. An application fee of Rs 25,000 and a licence fee of Rs 5 lakh have been fixed, creating a clear regulatory framework for operating aggregator services.

The policy links security deposit requirements to the size of the vehicle fleet, with a security deposit of Rs 10 lakh 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.

Passenger safety has been given prime importance, with drivers undergoing character verification, police verification, and psychological testing. Refresher training programmes will be conducted periodically for drivers.

The new framework also places emphasis on driver welfare, with aggregators required to provide insurance coverage for every passenger. Provisions have been made for Rs 5 lakh health insurance and Rs 10 lakh accidental death insurance for drivers.

The UP My Fleet aggregator portal (upmyfleet.com) has also been launched, which will enable the Transport Department to monitor aggregator services through a structured mechanism.

The new policy is expected to benefit both the government and companies by providing clear guidelines on rules, safety standards, and service quality.

The implementation of the Uttar Pradesh Motor Vehicles (Aggregator and Delivery Service Provider) Rules, 2026, is a significant step towards making transport and delivery services in Uttar Pradesh safer, more organised, and accountable.

The policy is also expected to promote electric mobility and reduce vehicle pollution in the state.

Overall, the new policy is a major step towards regulating the aggregator and delivery service industry in Uttar Pradesh and ensuring the safety and welfare of passengers and drivers.

The Yogi Government's initiative is expected to have a positive impact on the transport and delivery services sector in the state, making it more organised and accountable.