In a major revamp of how India governs app-based transport, the Ministry of Road Transport and Highways has introduced the Motor Vehicle Aggregator Guidelines 2025—a much-awaited rulebook that finally puts platforms like Uber, Ola, and Rapido on clear legal ground.
The new guidelines, announced Tuesday, formally give ride-hailing apps the green light to use dynamic pricing. That means platforms can now charge up to twice the base fare during busy hours, and drop prices by as much as 50% during lean periods. While state governments will still control the base fare, aggregators can now adjust prices in real time without fear of legal ambiguity—a major shift from the regulatory confusion they’ve been navigating for years.
“This is a big step toward building a smarter mobility ecosystem in India,” said a spokesperson from Uber, calling the government’s move balanced and overdue. Until now, these companies operated under a scattered patchwork of state laws, often leaving both riders and companies uncertain about what was allowed.
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Bike Taxis Get the Green Light
One of the most significant breakthroughs comes in the form of Clause 23, which allows state governments to officially approve the use of private motorcycles as bike taxis. This effectively legalizes services that have, until now, existed in a grey zone—especially in states like Karnataka, where Rapido’s operations were recently halted after a court ruling.
Under the new rules, states can issue short-term permits—valid for a day to a fortnight—to authorize private two-wheelers for shared rides. For players like Rapido and Ola, this is a much-needed comeback ticket.
In a statement, Rapido called the policy a “landmark moment” for India’s evolving mobility landscape. “The recognition of private two-wheelers as legitimate public transport options makes travel cheaper, faster, and more accessible—especially for people in smaller towns and congested urban pockets,” the company said.
Rapido also emphasized that the change could help ease traffic snarls, reduce emissions, and improve the efficiency of last-mile delivery services, especially in areas where conventional transport options fall short.
All in all, with these new guidelines, India has taken a firm step toward streamlining app-based mobility, encouraging innovation while also laying down rules to ensure safety, affordability, and transparency.
