July 8, 2025 | Location: Pune, India: On 1st July 2025, the Ministry of Road Transport and Highways (MoRTH) published its new Motor Vehicles Aggregator Guidelines, 2025. The guidelines, for the first time, explicitly permit personal two-wheelers like petrol/diesel bikes to be utilized as ride-hail bike taxi under aggregator platforms. While states are free to make their arrangements locally, the step is being viewed as a significant one in making legal a service that has long been in a regulatory grey zone.
Private two-wheelers may be registered as transport vehicles in the form of daily, weekly, or fortnightly passes issued by states under the new guidelines. Aggregators will need to seek approval, pay license fees (₹5 lakh for new licenses; ₹25,000 for renewal), and deposit security (₹10–50 lakh, based on fleet size)
Safety, Tech & Driver Welfare Centre Stage
The new framework is accompanied by strong safety and welfare conditions:
- Driver screening: Medical and vision testing, psychological tests, police checks.
- Induction training: 40 hours of induction training (app navigation, gender sensitivity, first‑aid, road safety) with annual refreshers and quarterlies for low‑rating drivers.
- Insurance cover: Minimum ₹5 lakh health insurance and ₹10 lakh term life cover per driver.
- Vehicle tech: AIS‑140‑compliant tracking devices, panic buttons, and aggregator apps in English, Hindi, and the local language.
- Control centers: Aggregators must operate 24×7 watchtowers and helplines.
Besides, the regulations mandate electric vehicle (EV) goals: states may incrementally require aggregators to supply a growing percentage of electric or zero-emission bikes
States Decision-Makers
The last word rests with state governments:
- They can decide whether or not to allow personal bike use.
- They control permit issuance, local license fees, fare structure, and EV compliance rate.
Up until now, some progressive states—such as Maharashtra, Goa, Haryana, West Bengal, and Rajasthan—had already launched pilot schemes for bike taxi on conditions; many others neither banned nor properly organized the practice.
Maharashtra’s e‑Bike Taxi Policy: A Model for Others
In April–May 2025, Maharashtra promulgated its draft “Bike‑Taxi Rules, 2025” for regulating electric-only bike taxi in cities with over 100,000. Key features:
- At least 50 e‑bikes have to be deployed on a single aggregator license by fleet operators.
- Stringent safety protocols: helmets, female passenger partitions, speed capping (≤60 km/h), and a limitation on daily working hours for riders.
- Compulsory policy validation, training sessions, and insurance protection.
- Aimed to generate about 20,000 employment opportunities, of which 10,000 will come in the Mumbai Metropolitan Region.
- The draft sought stakeholder inputs by June 5 and hoped to achieve formal implementation by July’s end.
Pushback & Local Stakeholders’ Concerns
- Auto‑Rickshaw Unions: Maharashtra auto‑rickshaw unions promptly agitated in fear of job losses and competition. They argue that a flood of two-wheelers would worsen traffic congestion and pollution, especially if it includes petrol-bikes.
- Safety & Infrastructure: Authorities in Mumbai and Pune worry about the lack of electric-charging infrastructure, overloading, and helmet/lifespan concerns, especially since government committees initially suggested banning bike taxi in these cities.
- Legal Fuzziness: Even after MoRTH clarified (post-January 2024) that commercial licenses can be issued to bike taxi, several states still refuse to lawfully register motorcycle taxis. Commercial registration involves giving up personal-use flexibility, creating a planning hurdle for gig workers.
Karnataka Drama: From Ban to Hunger Strikes
Compared to the liberal spirit of Maharashtra, Karnataka has been more cautious in its approach:
- In June 2025, the Karnataka High Court held firm on a state‑wide ban on bike taxi, originally launched in mid‑June, dashing hopes for legalization.
- Pro‑legalization advocates like MLA Arvind Bellad warn of social and economic impacts on ~1.5 lakh gig riders, students, and migrant workers.
- Affected riders are staging indefinite hunger strikes in cities like Bengaluru, Mysuru, Mandya, Davangere, and Ramanagara, demanding a fair regulation framework instead of blanket bans.
- The prohibition has allegedly increased traffic congestion, with levels reaching 59 % to 77 % in peak hours after the ban, a level sustained over the following days.
Equilibrating Livelihoods, Mobility & Safety
Cycle rickshaws have emerged as a central element of India’s last-mile connectivity, offering fast, affordable 5–15 km travel, especially in congested urban routes. They’ve served as a lifeline for numerous gig workers, students, and low-income travelers.
But the free fall has raised safety complaints—especially among women riders—and policy issues about helmet mandates, driver screening, and licenses.
With guidelines from the Centre now in place, the challenge for states is to craft a balanced policy that:
- Empowers gig workers through regulated, safe earning possibilities
- Offers low-cost, quick mobility solutions to city dwellers
- Lessens traffic and pollution issues instead of electric mobility
- Boosts road safety through training, regulation, and entry standards
What’s Next
States are to inform their bike-taxis regulations by the end of this month, as per the Central template. Presumably, the following situations would follow:
- Sanction in EV-capable states (Maharashtra, Goa, Rajasthan) for the systematic introduction of bike taxi under aggregators.
- Partial acceptance of gasoline-powered personal two-wheelers on condition of yellow-plate registration, increased permit fees, and stronger safety conditions.
- Stringent bans in denser metros such as Bengaluru and Delhi—unless public sentiment or judicial interventions come in the way.
- Continuing stakeholder push-pull: unions demanding protections, gig-workers protesting against bans, and commuters protesting for affordable transport.
Bottom Line
The Bike‑Taxi Rules are a landmark moment in India’s urban mobility history. It acknowledges personal two-wheelers to be ride-hail vehicles by law. With that, it also promotes innovation while introducing standards for safety, technology integration, and green governance.
The actual test, however, is at the state level. Whether politicians can craft rules that deliver economic inclusion, enable EV adoption, and ensure public safety. This is done while keeping traffic moving.
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