Aggregator Guidelines: Bike taxi services like Rapido, Ola, and Uber have received a major relief.
On July 1, 2025, the central government issued the Motor Vehicle Aggregator Guidelines 2025, which clearly state that private (non-transport) motorcycles can now be used for passenger services—but only with the approval of the respective state governments.
The guidelines mention that state authorities can allow private bikes to be used for shared mobility services.
New Guidelines for Vehicle Aggregators
According to the new guidelines, this move will help reduce traffic congestion and pollution, offer people cheaper transport options, support hyperlocal delivery, and create new job opportunities.
The guidelines also allow state governments, under Section 67(3) of the Motor Vehicles Act, to charge aggregator companies on a daily, weekly, or 15-day basis.
Aggregators are also required to ensure all drivers comply with the rules set by state authorities.
Ban in Karnataka
These guidelines now offer legal clarity to many app-based bike taxi services that were operating under uncertain regulations across different states.
However, the actual impact will depend on how and when individual state governments issue official notifications to enforce the rules.
Notably, Karnataka had banned bike taxi services from June 16, and the ban is still in place.
Rapido Welcomes the Move
Rapido has welcomed the Centre’s decision and the introduction of Section 23 under the Motor Vehicle Aggregator Guidelines, 2025.
The company said this is a significant step toward building a ‘Developed India’ by promoting affordable travel, reducing traffic and pollution, and boosting last-mile delivery services.
Rapido also said that this policy could create millions of new and flexible job opportunities and help give a more organized structure to the gig economy.
The company assured full support to state governments in areas like rider hiring, safety, insurance, and rule compliance.
