Govt clears bike taxis, subject to state government nod

The Union government on Tuesday for the first time allowed use of non-transport (private) motorcycles for passenger journeys through aggregators, subject to state government approval, providing long-awaited regulatory clarity for India's shared mobility sector. The Ministry of Road Transport and Highways in its 'Motor Vehicles Aggregator Guidelines 2025' said the new guidelines attempt to provide a light-touch regulatory system while attending to issues of safety and security of the user and the welfare of the driver.

"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 guideline said. 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.

This move brings relief to bike taxi operators like Rapido and Uber, who have long operated in a legal grey area, especially in states like Karnataka, where a recent ban on bike taxis had led to widespread protests. Major industry players, including Uber and Rapido, have welcomed the move, acknowledging its potential to drive innovation, expand affordable mobility, and create new livelihood opportunities.

The Motor Vehicle Aggregator Guidelines 2020 have been revised to keep the regulatory framework up to date with the developments in the motor vehicles aggregator ecosystem. The new guidelines attempt to provide a light-touch regulatory system while attending to issues of safety and security of the user and the welfare of the driver.