Centre Clears The Path For Bike Taxi Operations

Amid growing debate over the legitimacy of bike taxi aggregators in India, the central government has revised the ‘Motor Vehicles Aggregator Guidelines 2020’ to allow operations of bike taxis.

As per the new guidelines, ‘Motor Vehicles Aggregator Guidelines, 2025’, sent to the chief secretaries of states and union territories by the road transport and highways ministry (MoRTH), aggregation of non-transport motorcycles for journey by passengers as shared mobility through aggregators is allowed.

The guidelines said that bike taxis result in reduction in traffic congestion and vehicular pollution, along with “providing inter alia affordable passenger mobility, hyperlocal delivery, creating livelihood opportunities”.

The power to allow the aggregation of bike taxis still resides with the state government, which may impose fees on the aggregator to issue permits for private bike taxi aggregation.

“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,” as per the guidelines.

Beyond bike taxis, the central government said that it will develop a portal to enable single window clearance of applications for aggregator licence. Aggregators can avail licences for a fee of INR 5 Lakh for a period of five years.

The ministry said that there was a need to revise the 2020 guidelines as the shared mobility ecosystem has evolved significantly in the past five years.

The rising demand of mobility solutions, including bike sharing, autorickshaw rides, among others, made the ministry revisit the guidelines to keep the regulatory framework up to date with the evolving needs of transportation in the country.

Welcoming the move, a spokesperson of bike taxi major Rapido said, “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.”

Meanwhile, Uber also hailed the Centre’s move. “Timely adoption by states will be key to ensuring uniform implementation and building much-needed predictability for all stakeholders,” an Uber spokesperson said.

Are Troubles For Aggregators Over?

It must be noted that the Centre’s guidelines are not regulations that would force states to adopt them. Road transport, including taxis, is a concurrent subject in the country, which means both state and central governments can legislate on the issue.

“State Governments may adopt these revised guidelines within three (3) months from date of their issue and may include provisions in addition to the ones specified herein,” the revised guidelines read.

Hence, it might be too early to discern the impact of the new guidelines on the ongoing legal tussle in Karnataka between the state government and aggregators.

The Karnataka government effectively pulled the plug on bike taxis in the state when it dissolved the state’s bike taxi scheme in 2024. In April this year, the Karnataka High Court called for a ban on bike taxis unless the state government notifies specific rules and guidelines under the Motor Vehicles Act.

Following this, ride-hailing platforms Uber, Ola and Rapido filed an appeal before a division bench of the HC. However, the HC refused to stay the earlier single-judge order that suspended bike taxi services in the state and directed mobility platforms to halt their operations.

Bike taxi services in the state came to a halt on June 16. Drivers have been protesting against the ban and have urged the state government to adopt a policy which allows bike taxis to resume their operations.

Notably, bike taxis also came under the radar of governments in Delhi and Maharashtra in the past.

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