Pedal to the Policy: Centre’s ‘Aggregator’ Memo Frees Rapido’s Wheels

1. Policy Breakthrough: Centre Opens the Door to Bike Taxis

Regulatory Highlights:

The Ministry of Road Transport and Highways has issued the Motor Vehicle Aggregator Guidelines 2025, bringing much-needed guidelines to bike taxi operators like Rapido and Uber.

Rules allow for private (non-transport) two-wheelers for passenger mobility and hyperlocal deliveries—on a temporary basis, subject to state government approval.

Clause 23 of the guidelines provides authorization for states to license shared mobility services using personal bicycles, a move that seeks to reduce congestion, emissions, and enhance affordable transport.

2. State in the Driver's Seat: Implementation Depends on Local Nod

Governance Insights:

Although the Centre has approved the framework, its implementation rests on permission by individual states to issue notifications.

States can charge aggregators daily, weekly, or fortnightly charges and also license, comply, and regulate safety.

Karnataka, however, still has a prohibition against bike taxis, illustrating the spotty nature of enforcement.

3. Industry Welcomes: Rapido and Uber Applaud the Step

Stakeholder Responses:

Rapido embraced operationalization of Clause 23 as a step towards an integrated and inclusive Bharat.

Uber described the regulations as visionary action that fosters innovation and certainty within the shared mobility sector.

Both the companies focused on the possibility to generate lakhs of multi-skilled employment opportunities, primarily in rural and urban underdeveloped regions.

4. What It Means for Drivers and Riders

Impact Summary:

Consumers will gain from more affordable end-mile transportation solutions, especially in large cities and Tier 2/3 cities.

The private bike owners will be free to cooperate with aggregators openly and receive payment for passenger trips or deliveries.

Aggregators must ensure that driver hiring, insurance, safety, and price transparency all fall within compliance.

5. Road Ahead: A Portal and a Promise

Future Outlook:
 

The Centre plans to implement a one-window digital portal for aggregator licensing, fee collection, and compliance monitoring.

Meanwhile, the states will process applications manually under the new system.

The rules aim to make the gig economy legal, promote low-emission transport, and align with India's climate and mobility objectives as a whole.

Sources: Moneycontrol, Deccan Herald, The New Indian Express, MSN News, Ministry of Road Transport and Highways.