Government clears the use of private motorcycles for rides

July 2, 2025 Hot from the Oven Valli Sarvani

India’s shared mobility sector received a major boost with a key policy shift by the Union government.

For the first time, private (non-transport) motorcycles can now legally carry passengers through aggregators, subject to state government approval.

The Ministry of Road Transport and Highways announced the Motor Vehicles Aggregator Guidelines (MVAG) 2025 on Tuesday.

These aim to strike a balance between innovation, safety, and driver welfare.

The new rule permits state governments to allow private bikes to operate as shared vehicles.

This move may help reduce traffic congestion, cut pollution, and create jobs.

States may also impose daily, weekly, or fortnightly fees on aggregators for using private motorcycles.

This regulation comes under Section 67(3) of the Motor Vehicles Act, 1988.

Bike taxi operators like Rapido and Uber welcomed the guidelines. Both companies had long operated in a legal grey area, especially in states like Karnataka, where recent bans triggered protests.

Uber called the move “forward-looking” and stressed the importance of swift state adoption.

The company praised the ministry’s consultative and balanced approach.

Rapido highlighted Clause 23 of MVAG 2025, which permits passenger journeys on non-transport motorcycles.

The company called it a milestone toward Viksit Bharat and affordable mobility.

It also pointed out the benefits for underserved and hyperlocal areas. The move is expected to enhance last-mile connectivity and improve hyperlocal delivery.

Back in 2020, the Ministry had issued earlier guidelines for aggregators under Section 93 of the Motor Vehicles Act.

However, rapid changes in mobility, such as electric vehicles and auto-rickshaw sharing, called for updated rules.

The 2025 guidelines aim to provide a light-touch framework, focusing on safety and security for users and welfare for drivers.

Industry leaders believe this regulatory clarity will unlock innovation, enable new income streams, and expand affordable transport options for millions.

If implemented quickly by states, it could transform urban mobility and bring more private vehicles into the shared economy.

This policy may finally bring uniformity, reduce legal ambiguity, and support sustainable urban transport.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on February 02, 2017