Overview

• The Centre has authorized private two-wheelers to operate as bike taxis under the revised Motor Vehicle Aggregator Guidelines 2025.
• State governments have a three-month deadline to implement the new framework before bike taxi services can commence.
• Under the guidelines, platforms may double base fares during high-demand periods while ensuring drivers receive at least eighty per cent of total fares.
• App operators must secure health and term insurance for drivers of at least ₹5 lakh and ₹10 lakh respectively and provide a minimum of ₹5 lakh passenger coverage.
• Mobility firms including Rapido and Uber praised the regulatory clarity while unions such as IFAT and TGPWU flagged risks from unchecked surge pricing and weak enforcement.