Aggregator Guidelines: Big news for Ola, Uber, Rapido! Central government issues guidelines

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Aggregator Guidelines: Bike taxi platforms like Rapido, Uber and Ola have got a big relief. The central government has issued the Motor Vehicle Aggregator Guidelines 2025 on July 1, 2025, which specifically states that private (non-transport) bikes can be used for passenger service, but it will depend on the approval of the state government. It is clearly written in the guidelines that state governments can allow the use of private motorcycles for shared transport services (sharing mobility).

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Vehicle aggregator guidelines issued

Further, the guideline states that this initiative will not only help in reducing traffic jams and pollution, but will also provide cheaper transport options to the people. Also, hyperlocal delivery services will be promoted and new employment opportunities will also be created. These guidelines empower state governments under Section 67(3) of the Motor Vehicles Act to levy and allow aggregator companies to charge on a daily, weekly or 15-day basis. It also states that aggregators should ensure that all drivers associated with them follow these rules.

There was a ban in Karnataka

This decision has given legal clarity to those app-based services which were till now operating in legal uncertainty in many states. However, now its real impact will depend on whether the state governments issue notification to implement it or not. Bike taxi services have been banned in Karnataka from June 16.

Rapido said this

Rapido has welcomed the central government’s decision to implement Section 23 under the Motor Vehicle Aggregator Guidelines, 2025. The company has called it an important step towards ‘Developed India’, which will promote affordable travel, less traffic and pollution as well as last-mile delivery services. Rapido says that this policy change can create millions of new and flexible employment opportunities and give a more organized form to the gig economy. The company also assured that it will fully support the state governments in matters such as rider recruitment, safety, insurance and compliance with the rules.

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