Centre Approves Use of Private Bikes for Ride-Sharing via Aggregators

In a landmark move set to transform India’s shared mobility sector, the Union Ministry of Road Transport and Highways has allowed non-transport (private) motorcycles to be used for passenger journeys via aggregators, subject to state government approval.

The decision was outlined in the newly released Motor Vehicles Aggregator Guidelines 2025 (MVAG 2025) and marks the first time private motorcycles are officially permitted for commercial passenger use in India.

The guidelines aim to balance light-touch regulation with user safety, driver welfare, and environmental concerns. States now have the authority under Section 67(3) of the Motor Vehicles Act to allow or regulate private motorcycles for use by aggregators like Uber and Rapido.

“Aggregation of non-transport motorcycles for journey by passengers… will help reduce traffic congestion, vehicular pollution, and support affordable passenger mobility,” said the official guideline.

Fee Structure & Operational Flexibility

States may impose daily, weekly, or fortnightly fees on aggregators for the authorization of private motorcycles. This gives states flexibility to manage local mobility needs while encouraging formalization of two-wheeler ride-sharing.

Relief for Bike Taxi Operators Like Rapido and Uber

The move provides long-awaited legal clarity to bike taxi platforms that have operated in a grey area. In states like Karnataka, recent bans on bike taxis sparked protests and disrupted services.

• Uber welcomed the guidelines, calling them a “forward-looking step toward fostering innovation and regulatory clarity.”
• Rapido hailed the activation of Clause 23 as a “milestone in India’s journey toward a Viksit Bharat.”

“This will offer affordable transport in underserved and hyperlocal areas while helping reduce congestion and expand last-mile connectivity,” Rapido said.

The Motor Vehicle Aggregator Guidelines 2020, issued under Section 93 of the Motor Vehicles Act, provided the first national regulatory framework for aggregators. Since then, India’s mobility ecosystem has seen the rapid growth of:

• Bike taxis and e-scooters
• Auto rickshaw aggregators
• EV-based ride-sharing services

The 2025 update reflects the need for modern, adaptable policies in a diverse and evolving mobility landscape.

The successful implementation of these guidelines now rests with individual state governments. Quick adoption could lead to:

• Increased livelihood opportunities for bike owners
• Greater mobility access in Tier-2 and Tier-3 cities
• Reduced urban congestion and pollution

However, uniform implementation, enforcement of safety standards, and data-sharing protocols will remain key challenges.

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