Centre Gives Nod To Private Bike Taxis! Rapido, Uber Need State Approval; Cab Drivers To Get 80% Share In Earnings News24 –

By Correspondent On Jul 2, 2025

The Ministry of Road Transport and Highways has released Motor Vehicle Aggregator guidelines, 2025 on Wednesday to harmonize the ride-hailing framework across the country. Under its new guidelines, the government has also provided clarity on the operations of electric vehicles, auto-rickshaws and bike taxis for facilitating safe, reliable, and efficient transportation.

The new guidelines also allow for a private two-wheeler to operate as a bike taxi through aggregator platforms in India.

In addition to this, aggregators have to get a licence from the state government which will cost Rs 5 lakh for a new application and Rs 25000 for renewal. The maximum security deposit has been set at Rs 50 lakh. Only companies, LLPs or cooperative societies will be able to apply for the licence.

Drivers’ Measures

Various drivers’ measures have been introduced for the welfare of drivers in the Motor Vehicle Aggregator guidelines 2025. Drivers will now also be provided with minimum health insurance cover of Rs 5 lakh and term insurance of Rs 10 lakh. In addition, drivers will be allowed to work on other platforms simultaneously.

Passenger Safety Requirements

The guidelines have been designed for the drivers with respect to passenger safety. The guidelines require that all vehicles be equipped with a Global Positioning System (GPS), panic buttons, a first aid kit and a fire extinguisher to be in place in the event of an emergency. In addition, caution and strong warning has been issued by the Company to the drivers concerning the prohibited use of drugs, narcotics, alcohol or other harmful substances while operating the vehicle.

Fare Control Decisions

The guidelines empower the government to determine the base fares, which are allowed to fluctuate allowable surcharge time = 2X the fare, allowable discount = 50%. The drivers will receive 80% of the fare; 60% if the aggregator owns the vehicle.

Sustainable Initiatives

Aggregators have been requested to push preferential nature-friendly fuel options. If the aggregators’ violations are grave enough, it may lead to license suspension or cancellation in serious cases for 3 months. Penalties could be up to Rs 1 crore for serious violations.