Within the next three months, states are encouraged to adopt the revised rules. The updated tariff structure aims to preserve the general regulatory framework for pricing and operations while providing platforms with flexibility during times of strong demand.
According to the Ministry of Road Transport and Highways’ Motor Vehicles Aggregator Guidelines (MVAG) 2025, which were released on July 1, taxi aggregators will now be able to charge up to twice the base fee during high traffic hours. Up until recently, surge pricing was limited to 1.5 times the base fare.
When new rules are going to implemented?
Within the next three months, states are encouraged to adopt the revised rules. The updated tariff structure aims to preserve the general regulatory framework for pricing and operations while providing platforms with flexibility during times of strong demand.
By permitting the use of non-transport (private) motorcycles for passenger trips via aggregators, subject to state government clearance, the MVAG 2025 also closes a long-standing regulatory loophole.
The guidelines state that “the state government may allow aggregation of non-transport motorcycles for journey by passengers as shared mobility through aggregators.” This is done in an effort to improve access to affordable mobility and hyperlocal delivery, as well as to reduce traffic congestion and vehicular pollution.
Under Clause 23 of the guidelines, states will have the power to charge aggregators daily, weekly, or biweekly fees for using such motorcycles.
What did companies say about this announcement?
The action has been welcomed by bike taxi companies like Rapido and Uber, which have operated in a regulatory gray area in a number of states, including Karnataka, where a recent prohibition sparked protests. Rapido referred to the clause as a “milestone in India’s journey towards a Viksit Bharat,” stating that it would contribute to the expansion of inexpensive transportation in underserved areas and enhance last-mile connectivity.
Uber also lauded the revised guidelines as a step toward innovation and regulatory clarity.
“Timely adoption by states will be key to ensuring uniform implementation and building much-needed predictability for all stakeholders. We commend the ministry for its consultative and balanced approach,” a company spokesperson said.
2020 MVAG rules are replaced.
The 2020 MVAG rules have been replaced by the 2025 guidelines, which take into account the evolving shared mobility scenario in India, including the growing demand for electric vehicles, e-rickshaws, bike taxis, and variable pricing structures. According to the Ministry, the revised framework aims to preserve a minimal regulatory approach while guaranteeing driver welfare, user security, and safety.
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