The Tamil Nadu transport department has told companies such as Uber, Rapido, and Porter that they cannot use passenger vehicles like autorickshaws and two-wheelers meant for people to deliver goods and parcels. The department said that these vehicles are licensed only to carry passengers. Using them to carry goods is against the law (Motor Vehicles Act, 1988) and violates the rules under Tamil Nadu Motor Vehicles Rules, 1989. Also, penalties include seizure of vehicles and fines of up to Rs 5,000 for a first offence and later Rs 10,000.
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In addition, officials have ordered the apps to instantly remove any feature that lets people book passenger autos or bikes for goods delivery. They have also told transport inspectors in Chennai to conduct surprise checks. If drivers are found using passenger vehicles illegally for deliveries, their vehicles could be confiscated, and they could face penalties. Also, the apps could face legal actions. Enforcement started around 17 February 2026 during busy times of the day.
This action came after auto and taxi driver associations complained that app-based deliveries using passenger vehicles were hurting their business and breaking permit rules. The drivers’ union had even planned protests, but they temporarily stopped them after officials assured them strict enforcement would follow. Some local commuters are now concerned that the popular quick delivery option may become less available or more expensive because of the ban.
However, the transport department has clarified that firms can continue goods delivery services only if they use vehicles that have a proper commercial goods permit. It means bikes or three-wheelers registered specifically as goods carriers are allowed, but passenger autos and bikes cannot be used for that purpose. Officials said the aim is not to stop delivery services completely but to ensure that transport laws are followed accurately and fairly by all operators.
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Industry experts say that this decision may push app-based firms to restructure their delivery models in Tamil Nadu. Firms may need to onboard separate goods vehicles or apply for new permits to continue operations legally. In simple terms, customers could see fewer delivery options or slightly higher charges. Moreover, authorities believe that enforcing proper licensing will make a more balanced system for both traditional transport workers and app-based platforms.