Motor Vehicle Aggregator Guidelines 2025: Centre allows private bikes as taxis; Uber, Rapido welcome move

The Centre has, for the first time, allowed the use of private motorcycles for passenger journeys through aggregator platforms.

The Ministry of Road Transport and Highways issued the Motor Vehicle Aggregator Guidelines (MVAG) 2025 on Tuesday, stating that state governments may now permit the aggregation of non-transport (private) motorcycles for passenger rides.

The move is expected to provide long-awaited regulatory clarity to India’s shared mobility sector.

“The State Government may allow aggregation of non-transport motorcycles for journey by passengers as shared mobility through aggregators resulting in reduced traffic congestion and vehicular pollution, along-with providing inter alia affordable passenger mobility, hyperlocal delivery, creating livelihood opportunities,” the guidelines stated.

According to the guideline, the state government may, in exercise of its powers under sub-section (3) of Section 67 of the Act, permit aggregation of non-transport motorcycles for journey by passengers.

"The state government may, under sub-section (3) of Section 67 of the Act, impose fees on the aggregator for issuance of authorizations permitting non-transport motorcycles to undertake journeys through such aggregator, on a daily/ weekly/ fortnightly basis, as may be determined by the state government," it added.

Bike taxi operators such as Rapido and Uber welcomed the move, which comes after months of regulatory uncertainty, especially in states like Karnataka, where a ban on bike taxis had led to widespread protests.

Uber termed the guidelines as a “forward-looking step toward fostering innovation and regulatory clarity.”

“Timely adoption by states will be key to ensuring uniform implementation and building much-needed predictability for all stakeholders. We commend the Ministry for its consultative and balanced approach, and remain committed to working closely with governments at all levels to support effective and inclusive rollout of the framework,” an Uber spokesperson said.

Rapido described the operationalisation of Clause 23 of the MVAG 2025 as a “milestone in India’s journey towards a Viksit Bharat.”

“By recognising non-transport motorcycles as a means of shared mobility, the Government has opened the door to more affordable transportation options for millions, especially in underserved and hyperlocal areas. The move will also help address pressing challenges such as traffic congestion and vehicular pollution, while expanding the reach of last-mile connectivity and hyperlocal delivery services,” Rapido said in a statement.

Under the guidelines, state governments can impose fees on aggregators for issuing authorisations permitting private motorcycles to undertake journeys through such platforms, on a daily, weekly, or fortnightly basis.

The Ministry said the new guidelines aim to provide a light-touch regulatory system while ensuring the safety and security of users and the welfare of drivers.