Rapido, Ola, Uber… The way is clear for cheap rides, new rules issued for bike sharing, how will it benefit?
New Delhi: There is good news for Rapido, Ola, Uber and other bike taxi companies. The central government has issued Motor Vehicle Aggregator Guidelines 2025. In these, private (non-transport) motorcycles have been allowed to be used to carry passengers. However, the final decision on this will have to be taken by the states. According to these rules, if the state governments want, they can also allow private bikes to be used for sharing. This will reduce traffic on the roads, reduce pollution, people will get cheap rides, goods can be delivered quickly and people will also get employment. These rules have come into effect from July 1, 2025.
The central government has issued Motor Vehicle Aggregator Guidelines, 2025. According to these, state governments can allow non-transport (private) bikes to be used for sharing. This will reduce traffic, reduce pollution, people will get cheaper rides, help in delivery and increase employment opportunities.
Section 23 of these guidelines states that ‘State governments can allow non-transport motorcycles for sharing.’ This means that now state governments can decide whether private bikes can be used as taxis or not.
There will be benefits in many ways
The government says that this will reduce congestion on the roads and also reduce pollution. Also, people will get cheap transport facility, help in local delivery and new employment opportunities will also be created.
In the guidelines, state governments have been given the right under Section 67 (3) of the Motor Vehicles Act to authorize such services and charge aggregators (such as Rapido, Uber, Ola) for giving permission. This fee can be charged on daily, weekly or fortnightly basis.
The guidelines also state that aggregators must ensure that all drivers working with them follow the rules.
Aggregators welcomed this move
This new rule will provide relief to those app-based aggregators who were not yet legally clear. Now it remains to be seen what steps the state governments take to implement it. In Karnataka, bike taxi services have been banned since June 16.
Rapido has welcomed this move of the government. The company says that this is a milestone towards ‘Developed India’. This will provide affordable transportation to the people, reduce traffic and pollution and also improve delivery services.
Rapido also says that this policy will give employment to millions of people and boost the gig economy. The company has promised to help the states implement these guidelines. The company will focus on driver recruitment, safety, insurance and compliance with the rules.
Uber has also welcomed the Motor Vehicle Aggregator Guidelines, 2025. The company says that this is a good step towards innovation and clear rules in digital mobility. Uber also said that the states should adopt it as soon as possible so that it can be implemented uniformly across the country. The company has promised to work closely with all governments.
