Motor Vehicle Aggregator Guidelines 2025 Announced: Surge Pricing Legalized, Bike Taxis Allowed

The Ministry of Road Transport and Highways has unveiled the Motor Vehicle Aggregator Guidelines 2025. Introducing a uniform regulatory framework for bike & car taxi ride platforms like ola, Uber, and rapido. The new rules bring clarity on surge pricing, bike taxi operations, driver commissions, and stricter compliance measures.

Key Highlights:

• Surge Pricing Legalized: Platforms can now charge up to 2X the base fare during peak hours and offer discounts of up to 50% in off-peak times. While base fares will still be set by state governments, dynamic pricing now has official backing.
• Bike Taxis Get a Green Light: Under Clause 23, the central government has cleared the way for non-transport motorcycles to operate as shared mobility vehicles, subject to authorisation by states. This opens up possibilities for daily and weekly permits and provides a boost to players like Rapido and Ola in states such as Karnataka, where legal restrictions had previously halted operations.
• Driver Commission Rules: Aggregators must now ensure that:
  • Drivers using their own vehicles receive at least 80% of the fare.
  • Drivers using aggregator owned vehicles get a minimum of 60%.
  • This move is aimed at improving driver earnings and ensuring transparency.
• Ride Cancellations: A 10% cancellation penalty (capped at ₹100) can now be levied on both drivers and passengers who cancel without valid reasons. Platforms must list acceptable reasons clearly in their apps.
• Enhanced Compliance Requirements:
• Aggregators must:
  • Onboard only police-verified drivers.
  • Provide 40-hour induction training.
  • Maintain 24x7 helplines and control rooms.
  • Equip all vehicles with AIS 140-compliant GPS and panic buttons.
  • Ensure apps are accessible in regional languages.
  • Comply with India’sdata protection laws.

State governments have been given three months to implement the new rules, with flexibility to adapt them as per local needs. The move is expected to standardize operations, boost safety, and provide regulatory clarity to India’s rapidly evolving mobility ecosystem.