The Ministry of Road Transport and Highways has unveiled the Motor Vehicle Aggregator Guidelines 2025, introducing essential regulations for ride-hailing services including Ola, Uber, and Rapido. These regulations officially permit surge pricing, advocate for bike-taxi services, and establish explicit guidelines pertaining to driver commissions, cancellations, and compliance measures.

A pivotal aspect of these guidelines is the formal recognition of dynamic pricing, empowering platforms to charge up to double the base fare during high demand periods and to offer discounts of up to 50% in off-peak times. While base fares continue to be determined by state governments, platforms are now equipped with the official authority to adjust pricing in real-time.

In a significant advancement for two-wheeler aggregators, the central government has facilitated the operation of bike-taxis under Clause 23 of the Motor Vehicle Aggregator Guidelines 2025. The updated regulations allow state governments to authorize the use of non-transport motorcycles, which are generally personal two-wheelers, for shared mobility, thereby providing flexibility in issuing different forms of authorisation, such as daily or weekly.

This update marks an important change, particularly in states like Karnataka, where legal obstacles have previously hindered bike-taxi services. Recently, bike-taxi operators, including Rapido, Ola, and Uber, were instructed to halt their operations in Karnataka following a directive from the High Court.

In addition to fare flexibility and fleet management, the guidelines detail clear revenue-sharing policies. The latest directive stipulates that aggregators must ensure drivers receive a minimum of 80% of the fare for trips made using their own vehicles, allowing them to retain up to 20% as commission. In cases where the aggregator owns the vehicle, the driver’s minimum share is established at 60%. These regulations are anticipated to enhance transparency and equity in driver earnings.

The policy also tackles ride cancellations, permitting aggregators to impose a 10% penalty (limited to Rs 100) on both passengers and drivers who cancel their rides without reasonable justification. Platforms are mandated to explicitly outline acceptable cancellation reasons within their applications.

Regarding compliance, aggregators must satisfy various new requirements: onboarding only police-verified drivers, conducting a 40-hour induction training, maintaining round-the-clock control rooms and helplines, and equipping vehicles with AIS 140-compliant GPS devices and panic buttons. All applications must also be offered in regional languages, and companies are required to comply with India’s updated data protection legislations.

The transport ministry has granted state governments a three-month window to implement the new regulations. While adjustments may be made to accommodate local scenarios, these guidelines seek to establish uniform regulations nationwide, providing essential clarity for mobility startups grappling with varying rules across different states.