Relief for Rapido, other bike taxi operators as Centre’s aggregator guidelines 2025 permit shared mobility; states to take final call

Bike taxi

In a relief to bike taxi platforms like Rapido, Uber and Ola, Centre’s Motor Vehicle Aggregator Guidelines, 2025 - issued on July 1 - permit the use of non-transport (private) motorcycles for passenger rides, subject to state government approval.

Clause 23 of the guidelines states that "state governments may allow the aggregation of non-transport motorcycles for shared mobility".

Also, read: Karnataka bike taxi ban: Why innovation, government policies collide at India’s start-up hub

Further, it said this will help reduce traffic congestion and vehicular pollution, while offering affordable transport options, supporting hyperlocal deliveries, and creating new livelihood opportunities.

The guidelines further empower state governments - under Section 67(3) of the Motor Vehicles Act - to authorise such services and levy fees on aggregators for providing permissions, either on a daily, weekly, or fortnightly basis. "Aggregators must also ensure that all drivers onboarded under this clause comply with the regulations laid out in the guidelines", it said.

Also, read: Karnataka bike taxi ban: Users ride as ‘parcels’, drivers switch to deliveries, last-mile fares spike on day one

The move brings regulatory clarity for app-based aggregators, many of which have been operating in a legal grey area across several states. However, implementation now depends on whether the respective state governments issue enabling notifications. In Karnataka, for instance, bike taxi services have been banned since June 16.

Rapido in a statement welcomed the Centre’s move to operationalise Clause 23 of the Motor Vehicle Aggregator Guidelines, 2025, allowing non-transport motorcycles for passenger use. It called the move a milestone toward a 'Viksit Bharat' enabling affordable transport, reducing congestion and pollution, and expanding last-mile and delivery services.

Rapido said the policy shift could create lakhs of flexible jobs and help formalise the gig economy. The company assured support to states in implementing the guidelines, with a focus on rider onboarding, safety, insurance, and regulatory compliance.

Also, read: A week after bike taxi ban, Bengaluru sees spike in traffic jams, costlier auto rides & angry gig workers

Uber welcomed the Motor Vehicle Aggregator Guidelines, 2025, calling them a forward-looking step for innovation and regulatory clarity in digital mobility. It said timely state adoption is key for uniform implementation and pledged to work with all governments for an effective rollout.