Uber, Rapido welcome new Motor Vehicle Aggregator Guidelines 2025
Major industry players, including Uber and Rapido, have welcomed the move, acknowledging its potential to drive innovation, expand affordable mobility, and create new livelihood opportunities.
India's ride-hailing and bike-taxi industry has welcomed the government's new Motor Vehicle Aggregator Guidelines (MVAG) 2025, calling it a major step toward regulatory clarity, innovation, and expanded affordable mobility across the country.
The Ministry of Road Transport and Highways on Tuesday issued the Motor Vehicle Aggregator Guidelines (MVAG) 2025, providing long-awaited regulatory clarity for India's shared mobility sector by officially permitting states to allow the use of non-transport (private) motorcycles for passenger rides through aggregator platforms.
This move brings relief to bike taxi operators like Rapido and Uber, who have long operated in a legal grey area, especially in states like Karnataka, where a recent ban on bike taxis had led to increased tensions and widespread protests.
Major industry players, including Uber and Rapido, have welcomed the move, acknowledging its potential to drive innovation, expand affordable mobility, and create new livelihood opportunities.
Uber lauded the guidelines as a "forward-looking step toward fostering innovation and regulatory clarity."
"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," an Uber spokesperson said.
Rapido specifically welcomed the operationalisation of Clause 23 of the MVAG 2025. This clause permits the aggregation of non-transport motorcycles for passenger journeys, a move Rapido described as a "milestone in India's journey towards a Viksit Bharat".
"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...the move will also help address pressing challenges such as traffic congestion and vehicular pollution, while expanding the reach of last-mile connectivity and hyperlocal delivery services," Rapido said in a statement.
The policy shift will act as a catalyst for creating lakhs of flexible livelihood opportunities for riders across urban and rural India, promote shared and low-emission transport in line with India's climate commitments and formalise the gig economy with technology-backed platforms and regulatory support, it added.
Edited by Megha Reddy