Centre Allows Private Motorcycles To Be Used As Taxis; Surge Pricing Cap Raised To Twice The Base Fare

The central government has approved the use of private motorcycles as taxis under the revised Motor Vehicles Aggregator Guidelines (MVAG) 2025, a move welcomed by mobility platforms like Uber and Rapido, India Today reported.

The new guidelines, released by the Ministry of Road Transport and Highways on 1 July, also raise the surge pricing cap for cab aggregators from 1.5 times to 2 times the base fare during peak demand hours.

States have been asked to implement the updated guidelines within the next three months.

The revised fare structure is aimed at giving aggregators more flexibility during high-demand periods while maintaining regulatory oversight for pricing and operations.

A major update in the MVAG 2025 is the provision allowing private (non-transport) motorcycles to operate as bike taxis through aggregator platforms, subject to state approval.

According to the guidelines, “The state government may allow aggregation of non-transport motorcycles for journey by passengers as shared mobility through aggregators,” with the objective of reducing traffic congestion, lowering vehicular pollution, and improving access to affordable mobility and hyperlocal delivery.

This regulatory clarity has been widely welcomed by bike taxi operators such as Rapido and Uber, who have faced legal hurdles in states like Karnataka.

The guidelines also empower state governments to charge daily, weekly, or fortnightly fees from aggregators for the use of private motorcycles.

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