MV Aggregator Guidelines 2025 bring big changes for cab and bike taxi services
New Delhi: The Ministry of Road Transport and Highways has issued new rules that will impact how people use cabs and bike taxis. Called the Motor Vehicles Aggregator Guidelines (MVAG) 2025, the new policy was released on July 1.
One major change allows cab aggregators like Uber and Ola to charge up to twice the base fare during peak hours. Earlier, the surge pricing limit was 1.5 times. This change is aimed at giving cab companies more pricing flexibility when demand is high.
States have been asked to implement the new guidelines within three months. However, each state has the final say on when and how to enforce the rules.
Another big move under MVAG 2025 is the legalisation of private motorcycles for passenger rides, subject to state approval. This allows companies like Rapido and Uber to use non-transport (private) bikes for shared rides.
This is expected to improve last-mile connectivity, reduce traffic jams, cut pollution, and make travel more affordable—especially in smaller towns and cities.
States can charge daily, weekly, or fortnightly fees from companies for using private bikes, as per Clause 23 of the guidelines.
The move has been welcomed by bike taxi operators. Rapido called the change a “milestone” in India’s journey towards Viksit Bharat. Uber said the new rules bring innovation and regulatory clarity.
These guidelines replace the earlier MVAG 2020 and reflect big shifts in India’s shared mobility sector. There’s been a surge in demand for bike taxis, e-rickshaws, electric vehicles, and flexible pricing.
The Ministry said the updated rules try to keep regulations light, while still focusing on safety, user security, and driver welfare.
Experts believe timely adoption by states will be crucial for uniform growth and smoother operations in the ride-hailing sector.
