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Explained: The Motor Vehicles Aggregator Guidelines, 2025

The Ministry of Road Transport & Highways released a set of Guidelines governing Motor Vehicle Aggregators (MVA) such as Uber, Ola and Rapido. The Guidelines follow Section 36 of the Motor Vehicles (Amendment) Act, 2019, which allow the Central Government to set forth guidelines that State Governments can use to license aggregators.

The Guidelines cover a number of aspects of the ride-hailing apps business, from licensing and fare calculations, to app and website specifications. Notably, they allow aggregators to offer private two-wheelers as bike taxi services, something that is illegal in Karnataka.

“The State Government may allow aggregation of non-transport motorcycles for journey by passengers as shared mobility through aggregators resulting in reduced traffic congestion and vehicular pollution, along-with providing inter alia affordable passenger mobility, hyperlocal delivery, creating livelihood opportunities,” the guidelines say. They allow State Governments to regulate bike taxi offerings and impose fees on aggregators.

Why Were Bike Taxis Banned In Karnataka?

The Karnataka High Court (HC) had ordered a statewide suspension of bike taxi operations in April, after the State Government argued that deploying bikes registered for personal use for commercial purposes is illegal. It also prohibited the operation of bike taxis unless the State Government notified relevant guidelines under Section 93 of the Motor Vehicles Act, 1988, and its subsequent rules.

While the court allowed bike taxi operators to continue offering services till June 15, it refused to stay the ban order coming into effect from June 16.

However, the ban did not deter aggregator platforms, as many of them simply began offering “bike parcel” services, with the passenger being the “parcel”. Lawyers MediaNama spoke to asserted that such offerings could violate the court’s order and land the aggregators in legal trouble.

Maharashtra has also cracked down on bike taxis, banning them in 2023 before agreeing to permit authorised electric two-wheelers as bike taxis in cities with a population of over 100,000 people.

How Will Ride Fares Be Determined?

The MVA Rules allow aggregators to offer dynamic pricing to customers, that changes the ride fare based on the demand, within certain limits. The Rules also allow the State Government to set a base fare for a ride, that is chargeable for a minimum of three kilometres, to account for the distance travelled without a passenger.

Aggregators can charge fares up to 50% below or twice the base fare, depending on the demand. Drivers using their own vehicles must receive at least 80% of the fare, while those driving aggregator-owned vehicles should receive at least 60%, with the remaining amount retained by the aggregator.

If the State Government has not set the fare, aggregators could notify a base fare for regulatory purposes until the Government issues one.

Compliances Related To The App And Technology:

The aggregator must maintain a website that discloses its ownership details, registered address, fare structure, customer service contacts and other relevant information, accessible in English, Hindi and the official language of the state (other than Hindi). The app’s cybersecurity must be certified by a firm recognised by CERT-In, and the aggregator must comply with the Digital Personal Data Protection Act, 2023, when storing passenger and journey data.

The aggregator must also provide clear disclosures on fare distribution and driver incentives through both the website and the app. The app must also include features such as live location-sharing for passengers during the ride, accessibility tools for people with disabilities and a high-resolution driver photo. In addition, the app must have a feature where both the driver and the passenger can rate the overall quality of the journey.

Aggregators must also appoint a Grievance officer who must resolve complaints from both passengers and drivers, and publish this officer’s contact details on their website.

Passenger Safety Requirements:

The aggregator must comply with safety-related requirements to protect passengers. It must ensure that Vehicle Location and Tracking Devices in all motor vehicles, including motorcycles and three-wheelers, function properly and transmit location data to both the aggregator and the State Government’s Command and Control Centre.

Drivers must follow the route indicated in the app, and any deviation must trigger an alert to the control room, which must immediately contact both the driver and the passenger. The aggregator must also ensure the safety of passengers—especially women, children, and people with disabilities—in line with applicable laws. The app must include a feature to verify that the driver’s identity matches the one registered and police-verified during onboarding. Additionally, the aggregator must conduct regular checks of onboarded vehicles through authorised personnel. The aggregator shall must ensure a minimum amount of Rs. 5 Lakh as insurance for passenger.

In addition, aggregators must implement a zero tolerance policy on drugs and alcohol for drivers and ensure that driver contact details remained available to passengers for seven days after a trip. The aggregator must also operate a 24×7 control room to monitor vehicle movements and offer assistance in English and the official state language. Additionally, the aggregator must cooperate with authorities investigating incidents involving its vehicles or drivers.

Licensing For Aggregators:

Aggregators will have to apply for a license on a central government portal with an application fee set by the state government. Eligible candidates must be registered under the Companies Act, 2013, the Limited Liability Partnership Act, 2008, or must be a co-operative society of drivers or vehicle owners under the Co-operative Societies Act, 1912.

The fee for the grant of a licence is Rs. 5 lakh, Rs. 25,000 for renewal (once every five years) and Rs. 25,000 for noting a change of address. Aggregators must also provide a security deposit of Rs. 10 lakh if they have up to 100 buses or 100 other vehicles, Rs. 25 lakh if they have up to a 1,000 buses or 10,000 other vehicles, and Rs. 50 lakh if they have more than that.

The State Government may suspend an aggregator’s licence if it receives a complaint, after conducting an inquiry and giving the aggregator a hearing within ten days. The period of suspension may extend to three months. Grounds for suspension include failure to ensure passenger or driver safety, fare-related violations such as misuse of dynamic pricing or improper fare sharing, breach of driver contracts, violation of these guidelines, safety lapses causing accidents, financial irregularities, or any other reason deemed appropriate by the government.

Once a licence is suspended, the aggregator must immediately halt all operations. Before the suspension period ends, the aggregator must prove that it has resolved the issues after which the government may allow it to resume operations for a probationary period.

The government can also cancel an aggregator’s licence if it commits a fresh violation within three financial years of a suspension, or commits a serious offence endangering passenger or driver safety.

Driver-Related Compliances:

The aggregator has to carry out an induction-programme for all drivers. The programme must be of least 40 hours for drivers, combining in-person and virtual sessions. The course must train drivers in using the aggregator’s app, understanding relevant laws and responding to emergencies. It must also cover topics such as safe and fuel-efficient driving, vehicle maintenance, conduct and behaviour, terms of the driver-aggregator agreement, and include special modules on gender and disability sensitivity. The aggregator must upload the training structure on the designated portal. In addition, the aggregator cannot prohibit the drivers from operating with multiple platforms.

Drivers must have a driving licence, a valid bank account and no convictions in the past three years for offences such as driving under the influence of drugs/alcohol, sexual offences, fraud, or acts endangering public safety. Each driver must undergo a medical fitness examination, psychological assessment, and police verification at least seven days before onboarding. A formal contract must be executed between the aggregator and the driver in the state language, and the standard terms must be published online. These conditions must remain in force for the entire duration of the aggregator’s licence.

For driver welfare, the aggregator must provide health insurance of at least Rs. 5 lakh and term insurance of at least Rs. 10 lakh per driver, with annual increases as notified by the Central Government. These provisions are subject to the Social Security Code, 2020, once implemented. Aggregators must also conduct annual refresher training sessions and ensure that drivers with performance ratings below the 5th percentile undergo quarterly training to continue offering services. If a passenger files a complaint against a driver, the aggregator must complete an inquiry within three days and inform the passenger of the outcome before taking any action.

Vehicle-Related Compliances:

The aggregator must ensure that all motor vehicles operated by onboarded drivers comply with specific regulatory requirements. Each vehicle must have valid registration, a Certificate of Fitness, a third-party insurance policy, a pollution-under-control certificate, and display the registration mark as per the Central Motor Vehicle Rules (CMVR). All applicable taxes and dues must be paid, and the vehicle must not have any unpaid challans for traffic offences. The vehicle must display a copy of the driver’s licence and the vehicle permit in a clearly visible location.

Vehicles must be have a functional Vehicle Location Tracking Device with a panic button connected to the aggregator’s control room and the State’s integrated command and control centre. Child lock mechanisms must be disabled, and vehicles must include a manual override for central locking where applicable. Additionally, vehicles must carry a fire extinguisher and a first-aid kit.

Aggregators must not onboard vehicles that are more than eight years old from their initial date of registration and maintain updated records of each vehicle.