Bike taxi ban: Centre allows use of non-transport motorcycles for passenger journeys through aggregators

The Hindu

12 hours ago

Bike taxi platforms have received a boost with the Union government notifying the Motor Vehicle Aggregator Guidelines (MVAG), 2025, on July 1.
The new rules permit the use of non-transport (private) motorcycles for passenger transport, provided State governments grant their approval. The development has sparked renewed optimism among aggregators and gig workers hoping for a revival of bike taxi services in Karnataka.
Clause 23 of the guidelines states that 'state governments may allow the aggregation of non-transport motorcycles for shared mobility.' This clause is being seen as a game-changer by mobility companies, especially in cities like Bengaluru, which have a high demand for last-mile connectivity.
According to the guidelines, this move is expected to reduce traffic congestion and vehicular pollution, while offering affordable transport options, supporting hyperlocal deliveries, and creating new livelihood opportunities. The Centre has vested state governments with the power to regulate and authorise such services under Section 67(3) of the Motor Vehicles Act. States can now impose authorisation fees on aggregators, which may be collected on a daily, weekly, or fortnightly basis.
Further, the guidelines lay down clear compliance norms for aggregators. 'Aggregators must also ensure that all drivers onboarded under this clause comply with the regulations laid out in the guidelines,' it says. This includes adherence to safety standards, insurance norms, and responsible onboarding practices.
Guidelines provide regulatory clarity
In its official response to The Hindu, Uber called the release of MVAG 2025 a forward-looking step. A spokesperson for the company said the guidelines provide regulatory clarity and promote innovation in India's digital mobility sector. 'Timely adoption by States will be key to ensuring uniform implementation and building much-needed predictability for all stakeholders. We commend the Ministry for its consultative and balanced approach, and remain committed to working closely with governments at all levels to support effective and inclusive rollout of the framework,' the spokesperson said.
Rapido also welcomed the Centre's move, particularly the operationalisation of Clause 23. 'We welcome the Ministry of Road Transport & Highways, decision to operationalise Clause 23 of the new Motor Vehicles Aggregator Guidelines, 2025, which permits the aggregation of non-transport motorcycles for passenger journeys. This move, rooted in the State's powers under Section 67(3) of the Motor Vehicles Act, is a milestone in India's journey toward a Viksit Bharat, a developed, self-reliant, and inclusive India,' a company spokesperson told The Hindu in a statement.
The company added that this step aligns with India's goals for sustainable urban development and will help address pressing challenges such as traffic congestion and pollution. It further stated that the move would significantly boost last-mile connectivity and local delivery services.
'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. We are committed to supporting the various state governments in operationalising this initiative in line with all stipulated guidelines. We will ensure responsible onboarding of riders, compliance with safety and insurance norms, and timely contributions as part of the proposed authorisation framework,' the spokesperson added.
Develop a state-level framework: BTA
The Bike Taxi Association said that by allowing non-transport motorcycles to be used for shared rides, the Centre has created an opportunity to widen transport access, especially in areas underserved by traditional public transit.
'As one of India's most urbanised and digitally connected states, Karnataka stands to benefit significantly from the operationalisation of Clause 23. Bengaluru, in particular, with its high traffic density and demand for last-mile options, is well-positioned to implement this model effectively. Rural and semi-urban Karnataka can also leverage this framework to address mobility gaps and promote local entrepreneurship,' the association noted.
The association urged the Karnataka government to take note of the enabling policy and develop a State-level framework that permits shared mobility on non-transport two-wheelers.
However, transport department officials said they are reviewing the guidelines and are not in a position to comment at this time.