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India Allows 2× Surge Pricing and Legalises Private Bike Taxis Under New Aggregator Rules

The framework embeds insurance, training, tracking standards for aggregator drivers, offering states a three-month window to tailor local rules.

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Overview

  • The Union government’s MVAG 2025 doubles the permitted surge cap to twice the base fare during peak hours and sets a 50% floor for off-peak rates.
  • Private motorcycles gain formal recognition as bike taxis under Clause 23, pending state-level authorisation and discretionary fee structures.
  • Aggregators are now required to secure at least ₹5 lakh health insurance and ₹10 lakh term insurance for each driver on their platforms.
  • Mandatory safety and technology measures include AIS-140 compliant tracking devices, panic buttons, 24×7 control rooms, and structured training programmes.
  • States have until early October to notify the revised rules, with flexibility to set base fares, licence fees and electric-vehicle inclusion targets.