Ride-hailing services disrupt taxi markets and face regulatory actions

Traditional taxi services are facing significant disruption due to the rise of ride-hailing applications. In Morocco, operators in cities such as Agadir and Casablanca are struggling to retain drivers, who are increasingly migrating to app-based services for higher profitability and perceived freedom. This shortage has forced many taxis off the road and left some operators facing potential bankruptcy due to high licensing and insurance costs.

In India, the State Transport Authority of Chandigarh has suspended the aggregator licenses for Uber and Rapido for six months. The suspension follows a year-long compliance investigation regarding the Chandigarh Administration Motor Vehicles Aggregators Rules, 2025. Authorities cited failures to provide necessary documentation, issues with driver health and term insurance, lack of driver training, and improper fare structures. Additionally, the authority flagged a subscription model that drivers claimed forced them into prepaid recharges.