Haryana’s New Aggregator Rules: What It Means For Delivery And Ride-Hailing Platforms?

What began as a draft notification published in the Haryana Government Gazette in December last year has now become a law. 

The Haryana cabinet, chaired by chief minister Nayab Singh Saini, approved the rules for granting aggregator licences under the Haryana Motor Vehicles Rules, 1993, clearing the final version of the framework that was first floated for public comment last December. 

The cabinet approved the substitution of Rule 86A of the Haryana Motor Vehicles Rules, 1993, to establish a comprehensive regulatory framework for app-based passenger aggregators and delivery service providers operating in the state.

The biggest headlines were dedicated to the approval of the clean fuel mandate. Aggregators and delivery platforms operating in Haryana will no longer be allowed to induct new petrol or diesel vehicles into their fleets after December 31, 2025. 

For companies like Ola, Uber, Rapido, Porter, and delivery-focused platforms operating in Haryana, these rules represent the most structured regulatory intervention the state has ever attempted in the gig-economy transport sector. 

This is important as Haryana’s biggest cities, Gurugram and Faridabad, are two of India’s most active markets for ride hailing and food delivery. Both sit within the National Capital Region, so these rules intersect with CAQM (Commission for Air Quality Management) directives that have already imposed strict emission constraints for operating in Delhi NCR. 

Haryana Brings In License To Operate

The foundational change that this brings is that no aggregator or internet-based passenger or delivery platform can operate in Haryana without a formal licence from the state transport commissioner. 

Notably, the full licence application will require the company to be structured as either a registered company under the Companies Act 2013, a Limited Liability Partnership under the LLP Act 2008, or a cooperative society of drivers or vehicle owners registered under the Co-operative Societies Act 1912. 

The entity must have its registered office in India and a sub-office specifically in Haryana. A platform operating purely out of Bengaluru or Mumbai with no Haryana presence cannot simply apply remotely and must establish a physical foothold in the state.

The application will be filed through what the rules call the “Clean Mobility Portal” in Form HR No. 38A, along with online payment of an application fee of ₹5 Lakh for a fresh licence. The competent authority has 90 days to decide the application, and once approved, the licence must be issued within 15 days of the aggregator paying the licence fee and security deposit.

For fleets up to 1,000 buses or 10,000 other vehicles, companies will have to submit a security deposit of ₹25 Lakh. While for any fleet larger than that, which would include all major national platforms, the security deposit is ₹50 Lakh. 

This means a large platform like Ola or Uber has to deposit ₹50 Lakh in escrow with the state government for five years, with the permanent risk of forfeiture if the licence is cancelled for any regulatory violation.

The licence is valid for five years. Renewal requires the competent authority to examine the aggregator’s compliance record under these rules and any punitive actions taken against it in Haryana during the licence period. 

EV Fleet Mandates

Now, overlaid on this licensing structure is the fleet composition mandate, which is arguably the most disruptive to operations. Under section 11(f) and 11(g) of the rules, the entire fleet of vehicles onboarded by an aggregator must be CNG-powered or electric vehicles only.

The rules additionally incorporate by reference CAQM Direction No. 94 dated June 3, 2025, which applies specifically to the National Capital Region and adjoining areas, a zone that covers Gurugram, Faridabad, Sonipat, Panipat, and other major Haryana cities. 

That direction states that only CNG or Electric three-wheeler autorickshaws can be additionally inducted into existing fleets, and that no conventional ICE vehicles running on diesel or petrol can be inducted into four-wheeler LCV/LGV fleets or two-wheeler fleets from January 1, 2026 onwards.

The practical consequence of this comes as any aggregator that currently has petrol or diesel cabs, bike-taxis, or delivery vehicles in its Haryana supply pool cannot add new ones after January 2026, and cannot onboard any new petrol or diesel vehicle even if it is brand new and fully compliant in every other way. 

The existing fleet can continue until it ages out under the 8-year rule, which bars aggregators from onboarding any vehicle registered more than eight years before the date of onboarding.

Aggregators must also ensure that no active vehicle on their platform crosses eight years in operation. This is an ongoing obligation for companies, not a one-time check, so they have to dedicate resources to monitor the lifecycle of vehicles. 

As a result, existing petrol and diesel vehicles close to their eight-year limit will have to be churned out and replaced with CNG or EV alternatives.

When it comes to ride hailing, the CNG taxi and cab ecosystem is reasonably mature in urban Haryana. But for home delivery platforms like Swiggy, Eternal, Zepto, Porter, Rapido which rely overwhelmingly on two-wheelers, the transition path is materially harder since any new delivery partner on their platform will need to have EVs.  

Electric two-wheelers are more expensive in terms of upfront ownership cost, have varying range and charging infrastructure. Plus, the supply of EV delivery bikes at scale remains limited. There could be a temporary worker crunch if companies have to comply with these rules from the get-go. 

These platforms will either need to absorb higher vehicle acquisition or incentivisation costs, accelerate EV driver-partner financing programs, or face a shrinking supply base in the state.

On top of the EV fleet, every vehicle on the platform must meet safety and insurance standards. These include valid registration, a fitness certificate, a valid third-party insurance policy, a pollution-under-control certificate, payment of all applicable motor vehicle taxes, no outstanding dues, and a displayed copy of the driver’s licence and vehicle permit visible to passengers from the rear of the front seat in case of ride-hailing. 

More technically demanding is the requirement that every vehicle be fitted with a functional AIS 140-compliant Vehicle Location Tracking Device (VLTD) with a mandatory panic button, as specified under Rule 125H of the Central Motor Vehicles Rules 1989. 

This VLTD must be connected both to the aggregator’s own control room and to Haryana’s integrated command and control Centre. The aggregator is also required to maintain a 24×7 control room that monitors all active onboarded vehicles and maintains uninterrupted contact with them. 

Motorcycles and three-wheelers are included in this tracking requirement through in-app location tracking where hardware VLTD installation may not be feasible.

Haryana Mandates Driver Compliance, Commission Cap

If the fleet and licensing sections set the operational baseline, the sections on driver compliance, welfare, and fare regulation are where the financial impact on aggregator toplines will be felt most severely. 

Before any driver is placed on the platform, the aggregator must verify valid identity documents, a driving licence for the relevant vehicle class, a valid bank account, and the experience required under these rules. 

Beyond paperwork, the aggregator must arrange a medical fitness examination including an eye check-up, conduct a psychological analysis to assess onboarding fitness, and complete police verification of character and antecedents at least seven days before onboarding — with written records maintained throughout. All driver documents must be stored digitally and authenticated through the SARATHI portal.

On the welfare side, aggregators bear three hard financial obligations for every active driver. First, a health insurance policy of minimum ₹5 Lakh per driver, increased annually by a percentage notified by the Central Government. 

Second, a term life insurance policy of minimum ₹10 Lakh per driver, also annually escalated. Third, an annual refresher training programme conducted through in-house resources or external institutions, with records maintained. 

The rules clarify that once the Social Security Code 2020 is fully notified and implemented, its provisions will take precedence, but until then, these are the binding minimums. 

“In terms of compliance, group insurance structures would imply that combined health and life insurance would cost around ₹4,000-₹7,500 per year for each worker (driver), translating to ₹10-₹75 Cr per year depending on fleet size, a recurring operational cost, not a one-time expense,” said Akash Parwal, CEO & cofounder, Square Insurance broking.

The fare regulation section is where topline compression becomes most explicit. The rules establish a mandatory driver earnings floor based on the nature of vehicle ownership. 

Where a driver brings their own vehicle to the platform, the dominant model across Ola, Uber, and most aggregators, the driver must receive at least 80% of the applicable fare, leaving the aggregator with a maximum of 20% as its apportioned fare (commission). 

Currently, major platforms charge commissions in the range of 20-30% in many markets. In Haryana, the ceiling is now 20% for the core third-party vehicle model. 

Where the aggregator owns the vehicle itself, the driver share floor drops to 60%, allowing the aggregator to retain up to 40%, recognising that the aggregator bears vehicle ownership costs in that case.

Further, payment must be settled daily, weekly, or fortnightly. This closes any avenue for platforms to delay earnings settlement to drivers beyond a fortnightly cycle.

The rules also cap cancellation revenue for platforms. Whether a driver or a passenger cancels a confirmed booking, the maximum penalty that can be charged is 10% of the fare, and in no case more than ₹100. 

The cancellation amount would be split between the driver and the aggregator in the same proportion as the standard fare split, meaning if a ₹500 ride is cancelled, the maximum fee is ₹50, of which the aggregator retains at most ₹10 (20% of ₹50). 

For high-value rides or airport trips where cancellations currently attract higher penalties on some platforms, this is a meaningful reduction in incidental revenue.

Additionally, dead mileage – the distance a driver travels to pick up a passenger – cannot be charged to the passenger unless the ride origin distance is less than 3 km, and even then, fare is charged only from the actual pickup point to the actual drop point. No pre-ride charges for longer pickups are permitted.

Besides this, the rules require every aggregator to formulate and publish a zero-tolerance policy on alcohol and drug use by on-duty drivers, uploaded to both website and app. 

Upon receiving a complaint alleging a violation, the driver must be immediately and forthwith taken off the platform, the suspension continues through the entire investigation period, with no discretion for the aggregator to delay this step. The investigation and suspension clock run simultaneously, not sequentially.

If an aggregator violates these rules, the Transport Commissioner can suspend the licence for up to three months, impose a financial penalty of between ₹1 Lakh and ₹1 Cr without suspension if that is deemed more appropriate. 

Where violations are serious enough to endanger safety, or where the aggregator has been suspended and then commits another infraction within three financial years after the original suspension, the commissioner can cancel the licence outright, forfeiting the entire security deposit and bringing that cancellation to the notice of other state governments and the central government. 

Taken together, the requirements form a regulatory cost stack that did not exist before. Platforms will need to assess not just the direct financial hit but the operational restructuring required to meet each of these mandates simultaneously, and do so in a market where they are already under margin pressure from driver incentives, passenger discounts, and competition.

“India’s gig workforce size is expected to grow from around 87 Lakh people (2024-25) to around 2.35 Cr by 2029-30. The social security infrastructure, however, is expected to trail the rapid development. The proposed rules begin to change that,” said Parwal.

Edited by Nikhil Subramaniam

The post Haryana’s New Aggregator Rules: What It Means For Delivery And Ride-Hailing Platforms? appeared first on Inc42 Media.