Uber and Rapido applaud government’s new 2025 guidelines for bike taxis

India’s rapidly growing ride-hailing and bike-taxi sector has welcomed the Motor Vehicle Aggregator Guidelines (MVAG) 2025, unveiled by the Ministry of Road Transport and Highways.

It is a significant move toward providing regulatory clarity, supporting innovation, and expanding affordable mobility options across the country.

The new guidelines grant states the authority to allow private motorcycles to be used for passenger transport via aggregator platforms, offering long-awaited relief to companies like Uber and Rapido. These services have long operated in a legal grey area, particularly in states such as Karnataka, where bike taxis were recently banned, sparking tensions and protests.

Industry giants have embraced the announcement.

Uber described the updated framework as a “forward-looking step toward fostering innovation and regulatory clarity.”

A company spokesperson emphasised the importance of timely adoption by states to ensure consistent implementation and predictability for stakeholders. “We commend the ministry for its consultative and balanced approach and remain committed to working closely with governments at all levels to support effective and inclusive rollout of the framework,” the spokesperson said.

Rapido, which has been especially active in advocating for legal recognition of bike taxis, expressed strong support for Clause 23 of the new guidelines.

This clause allows non-transport (private) motorcycles to be aggregated for passenger transport. The company called this provision a “milestone in India’s journey towards a Viksit Bharat.”

“By recognising non-transport motorcycles as a means of shared mobility, the government has opened the door to more affordable transportation options for millions, especially in underserved and hyperlocal areas,” Rapido said in a statement.

According to Rapido, the decision will help tackle key urban issues such as traffic congestion and vehicular pollution, while boosting last-mile connectivity and enabling hyperlocal deliveries. The new policy is also expected to generate lakhs of flexible job opportunities for riders across both urban and rural areas.

Moreover, the company noted that the guidelines support India’s climate goals by promoting low-emission shared transport and play a key role in formalising the gig economy through structured, tech-enabled platforms under a clear regulatory umbrella.