In a landmark decision that could transform urban transportation across India, the Ministry of Road Transport and Highways (MoRTH) has issued the Motor Vehicle Aggregator Guidelines 2025, permitting the use of private two-wheelers for passenger services through app-based platforms.
New Framework and State Authority
Under Clause 23 of the new guidelines, state governments now have the authority to allow non-transport motorcycles to operate as bike taxis via aggregator platforms like Rapido, Ola, and Uber. This authorization falls under Section 67(3) of the Motor Vehicles Act, giving states the flexibility to levy fees on a daily, weekly, or fortnightly basis. The guidelines come with mandatory compliance requirements covering safety protocols, rider onboarding processes, and comprehensive insurance coverage, ensuring passenger protection remains paramount.
Resolving Legal Challenges
This policy shift directly addresses ongoing litigation challenges faced by bike taxi operators. Karnataka serves as a prime example, where the High Court banned bike taxi services due to the absence of clear regulatory framework. Consequently, major aggregators suspended operations and entered discussions with state authorities. The uncertainty had created a regulatory void that left millions of commuters without affordable transportation options, particularly in underserved and hyperlocal areas.
Industry Impact and Future Outlook
Rapido, one of India’s leading bike taxi platforms, welcomed the development enthusiastically. The company described it as “a milestone in India’s journey toward a Viksit Bharat — a developed, self-reliant, and inclusive India,” emphasizing how the guidelines recognize non-transport motorcycles as legitimate shared mobility solutions.
While the central government has provided the framework, the implementation ball is now in the states’ court. Each state government must decide whether to authorize these services within their jurisdiction, creating a potentially varied landscape of bike taxi availability across India. This decision could unlock affordable transportation for millions of Indians, especially in areas where traditional taxi services are limited or expensive. The guidelines represent a significant step toward modernizing India’s transportation ecosystem while ensuring safety and regulatory compliance, and the coming months will reveal which states embrace this opportunity to enhance their urban mobility infrastructure.
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