Bengaluru, July 3: The Indian government has approved the use of private motorcycles for passenger transport under new Motor Vehicle Aggregator Guidelines (MVAG) 2025, paving the way for the revival of bike taxi services in states such as Karnataka, where the sector had faced legal and regulatory hurdles.
The Ministry of Road Transport and Highways notified the new guidelines on July 1. A key provision, Clause 23, allows state governments to authorise the aggregation of non-transport (white board) motorcycles for shared mobility, subject to local regulations.
The move offers a boost to bike taxi operators like Rapido and Uber, which had been forced to halt services in Karnataka earlier this year following a state-level ban. The ban had sparked widespread protests from gig workers and urban commuters who rely on affordable, last-mile transport options.
“This marks a significant step towards sustainable, inclusive, and tech-enabled mobility,” a Rapido spokesperson said in a statement, welcoming the policy shift. The company said the decision would help formalise the gig economy, create flexible livelihood opportunities, and support India’s climate and development goals.
Uber also praised the Centre’s consultative approach, calling the move “forward-looking” and stressing the need for timely adoption by states to ensure regulatory clarity and uniform implementation across India. The new guidelines allow states to levy authorisation fees—daily, weekly, or fortnightly—on aggregators and mandate strict compliance with safety, insurance, and onboarding norms.
The Bike Taxi Association (BTA) urged the Karnataka government to take prompt action to formulate a state-level policy aligned with the new guidelines. “As one of India’s most urbanised and digitally connected states, Karnataka is well positioned to implement this model, particularly in Bengaluru and underserved rural areas,” the BTA said.
Transport department officials in Karnataka said they are reviewing the guidelines and declined to comment on next steps. Proponents of the policy argue that shared mobility via private motorcycles can ease urban congestion, reduce vehicular pollution, and enhance last-mile connectivity, especially in cities with strained public transport systems.
