3 min readNew DelhiJul 3, 2025 06:44 AM IST
First published on: Jul 2, 2025 at 11:33 AM IST
The Centre has opened the door for state governments to permit the use of non-transport and privately registered motorcycles for passenger journeys through aggregators such as Rapido, Ola, and Uber.
Bike taxis on ride hailing platforms have become a fast-growing segment for the companies and their customers alike, owing to the cheaper travel costs. However, states like Karnataka have banned the operations of bike taxis, following a High Court judgement.
Since bike taxis allow white-plate owners of motorcycles to use their vehicle for commercial purposes, a section of the transport industry, including several cab and auto riders have been critical of the sector. Questions of safety in travelling on a two-wheeler have also been raised.
In a statement on Tuesday, the Ministry of Road Transport and Highways said that the new Motor Vehicles Aggregator Guidelines, 2025 are an 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.
What the guidelines say
The guidelines, issued on July 1 said, “The state government may allow aggregation of non-transport motorcycles for journeys 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, and creating livelihood opportunities”.
It added that state governments are also empowered to impose fees on aggregators for the issuance of authorisations permitting non-transport motorcycles to undertake journeys, on a daily, weekly or fortnightly basis.
While the guidelines don’t mandate state governments to accept bike taxis, it gives them legal footing to take that call under Section 67(3) of the Motor Vehicles Act. Allowing for the provision for states to collect fees from aggregators offering this service could also act as an incentive for states to green-light bike taxis since the fees could serve as a potential revenue stream.
How ride hailing services reacted
Ride hailing platforms Rapido and Uber have welcomed the guidelines, calling for a swift implementation at the state government level.
“By recognising non-transport motorcycles as a means of shared mobility, the government has opened the door to more affordable transportation options for millions, especially in underserved and hyperlocal areas,” Rapido said in a statement.
“We see this policy shift as a catalyst for creating lakhs of flexible livelihood opportunities for riders across urban and rural India, promoting shared and low-emission transport in line with India’s climate commitments and formalising the gig economy with technology-backed platforms and regulatory support,” it added.
Rapido said that it will work with various state governments to operationalise the Centre’s guidelines and “ensure responsible onboarding of riders, compliance with safety and insurance norms, and timely contributions as part of the proposed authorisation framework”.
Uber said that a timely adoption of the framework by states “will be key to ensuring uniform implementation and building much-needed predictability for all stakeholders”.
Rapido said the service is being offered completely free of cost in the state, enabling captains to earn a livelihood with no commercial obligations or financial deductions. (File Photo) 
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