Are Bike Taxis Illegal? Govt Issues New Game-Changing Guidelines for Ola, Uber, Rapido

In a significant move for India's urban mobility landscape, the Ministry of Road Transport & Highways (MoRTH) has issued new guidelines allowing state governments to authorize the use of privately registered (non-transport) motorcycles for passenger transport via aggregators such as Rapido, Ola, and Uber.

Released on 1 July, the Motor Vehicle Aggregator Guidelines (MVAG) outline a clear framework for states to permit and regulate bike taxi operations. They suggest that allowing shared mobility through non-transport motorcycles could help reduce traffic congestion and vehicular pollution while also enabling affordable transportation, hyperlocal deliveries, and income opportunities.

Importantly, the guidelines permit states to levy operational fees, daily, weekly, or fortnightly, on aggregators seeking to use private motorcycles for passenger journeys. Aggregators are also responsible for ensuring that all enlisted drivers comply with legal, safety, and regulatory norms, including possessing valid driving licenses, insurance, and maintaining their vehicles in good condition.

A Legal Turning Point

States can now regulate, charge fees, and ensure compliance, something they previously lacked clarity on. This is a significant step toward bike taxi regulations, which have been in the legal grey zone for too long.

If implemented swiftly, experts believe this could be a game-changer for urban mobility, enhancing last-mile connectivity, reducing commuting costs, and creating job opportunities.

Also read: Courier Delivery Man Rapes Pune Woman Inside Her Flat, Leaves Selfie

How did the Bike Taxi Industry React? 

Rapido, which has long championed bike taxi services, welcomed the move and communicated its committed support to state governments in operationalizing this initiative in line with all stipulated guidelines.

Uber also responded positively, calling the release of the MVAG 2025 a "forward-looking step" that brings innovation and regulatory clarity. Ola, however, did not immediately respond to queries.

Ground Reality 

Despite the central government’s green light, actual implementation now hinges entirely on individual state decisions. Karnataka, for instance, imposed a blanket ban on bike taxis effective June 16 crippling Rapido’s core operations in the state. 

In contrast, Maharashtra has permitted two-wheeler taxis, but only if they’re electric. Following this, Maharashtra's Transport Minister, Pratap Baburao Sarnaik, executed a crackdown on unauthorized bike taxis operating in the state by personally booking a Rapido bike from Mantralaya to Dadar.

He used a different name while booking the service, caught the driver red-handed, and explained to him that the service is illegal in the state. The minister generously offered Rs. 500 to the driver and stated that he aims to punish people behind the illegal operation and not poor like him. 

"Despite the clear announcement in the new e-bike policy that only electric bikes will be permitted, it has come to notice that some bike taxi services are blatantly violating the rules," wrote Sarnaik in his X post featuring his crackdown on illegal bike taxi services.