Uber Shuttle’s Hyderabad rollout runs into permit trouble; 40 bus owners penalised, 11 buses seized

Over 40 Uber Shuttle buses in Hyderabad seized for operating without valid permits, facing legal action and penalties.

In its initial days of operation in Hyderabad, over 40 buses operating under the banner of ‘Uber Shuttle’ were issued challans and 11 of them were seized for operating without valid documents and permissions. These cases were reported during a special drive conducted by the Madhapur traffic police on Tuesday (March 18, 2025) targeting a range of violations.

“Some of these buses had permits for wedding parties or sightseeing, but none had valid permissions for stage carriage operations. The drivers of the seized buses even lacked mandatory vehicle documents including registration, insurance and fitness certificates,” explained Madhapur DCP (Traffic) T. Sai Manohar.

A stage carriage permit allows buses to carry passengers along designated routes and pick up or drop off passengers at specified stops for separate fares. The permit is issued by the Regional Transport Authority under Section 72 of the Motor Vehicles Act, 1988 and violations could result in legal action and penalties for both the aggregator platform and vehicle owners.

According to the official, one in every 4-5 buses in Gachibowli was an Uber Shuttle. “Over 40 buses were caught within an hour, with challans ranging from ₹1,000 to ₹2,000 issued for various violations,” he said, adding that an estimated 800 such buses are operating across the city.

This comes shortly Uber launched its ‘Shuttle’ service in Hyderabad and is offering free rides as part of a pilot project running for three weeks. The move follows the service’s success in Delhi and Kolkata, aimed to provide a convenient alternative to private vehicular mobility to address traffic challenges in the city. It connects residential areas like Alwal, Ameenpur, Bachupally, Nampally, Uppal, and Vanasthalipuram to Hitec City, drawing interest from young professionals commuting to the IT corridor.

Officials clarified that buses operating through ride-hailing platforms or aggregators for staff transport are classified as contract carriages, based on an agreement between the platform and the operators. “These buses are intended to carry commuters directly from point A to point B without picking up or dropping off other passengers en route. In Telangana, only the Road Transport Corporation (RTC) buses is authorised to operate as stage carriers,” explained Hyderabad Joint Commissioner (Traffic) D. Joel Davis.

Cyberabad Commissioner Avinash Mohanty said that checks on such drives will continue, and the cases will be referred to the State Transport Department for further action. “The issue surfaced during a drive targeting illegally parked buses outside IT parks, which were obstructing traffic. Many were found operating without stage carriage permits,” he said.