India’s rapidly evolving ride-hailing sector has reached a pivotal moment with the introduction of the Motor Vehicle Aggregator Guidelines (MVAG) 2025, which officially legalize bike taxis nationwide. The guidelines, issued by the Ministry of Road Transport and Highways, end years of regulatory ambiguity for platforms like Rapido and Uber, but the final go-ahead for operations remains in the hands of individual state governments.
The MVAG 2025 explicitly permit the use of non-transport (private) motorcycles for passenger rides through aggregator platforms, provided state governments issue the necessary authorizations. This provision marks a significant shift, as bike taxis have long operated in a legal grey area especially in states such as Karnataka, where recent bans led to protests and confusion.
States can now allow private motorcycles to operate as bike taxis, issuing authorizations on a daily, weekly, or fortnightly basis and imposing fees as they see fit. All bike taxi drivers must undergo police verification, medical checks, insurance coverage, and mandatory training, aligning them with regulatory standards for other ride-hailing drivers.
Platforms must pay license fees and security deposits, and ensure their apps meet language and cybersecurity requirements. Companies like Ola, Uber, and Rapido can now charge up to double the base fare during peak hours and offer discounts during off-peak times, with base fares set by state governments.
Major players have welcomed the move. Uber called the guidelines “a forward-looking step toward fostering innovation and regulatory clarity,” emphasizing the need for timely state adoption for uniform implementation. Rapido described the operationalization of Clause 23—which permits non-transport motorcycles for passenger journeys—as a “milestone in India’s journey towards a Viksit Bharat,” citing benefits for affordable transport, last-mile delivery, job creation, and reduced congestion and pollution.
Despite the central government’s green light, actual bike taxi operations depend on state approval. Each state must issue its own notification to authorize and regulate these services. In states where bans remain, such as Karnataka, platforms must wait for local authorities to enact the new rules before resuming or expanding operations.