In a significant move to promote shared mobility and legalize the use of private bikes for commercial purposes, the Ministry of Road Transport and Highways (MoRTH) has revised the Motor Vehicles Aggregator Guidelines. This revision opens the door for private motorcycle owners to collaborate with bike taxi operators and app-based aggregators like Rapido, Ola, and Uber, providing both transportation and delivery services.
Private Bikes Now Legal for Passenger Transport
For the first time, non-transport (private) motorcycles will be allowed to operate as bike taxis or be used for hyperlocal delivery services, subject to state government approval. The guidelines enable state authorities to permit the aggregation of private bikes for shared passenger journeys, offering affordable mobility solutions, job creation, and reduced vehicular congestion and pollution.
Single-Window Portal for Easy Licensing
To streamline the process, the Centre will launch a single-window digital portal for:
- Applying for aggregator licences
- Payment of application and licence fees
- Submitting security deposits
Until this centralized portal becomes operational, state governments will manage the licensing process under the updated norms.
Flexible Guidelines with Focus on Safety
According to the official notification, the revised rules aim to maintain a light-touch regulatory framework, while also ensuring:
- User safety and security
- Driver welfare
- Transparent and easy-to-understand rules for both users and service providers
States and Union Territories have been asked to adopt the revised guidelines within three months from the date of issue.
Aggregators Must Ensure Compliance
The new norms place specific responsibilities on app-based aggregators:
- Disclose complete company and contact details on a dedicated website
- Share fare structures and customer support mechanisms
- Comply with proper driver onboarding and vehicle engagement standards
This ensures transparency, better user trust, and effective regulation of the platform’s operations.
What This Means for the Industry
This regulatory overhaul is likely to benefit existing players like Rapido, Ola, and Uber, enabling them to scale bike-based services across compliant states. It also opens up new income streams for thousands of private bike owners who can now earn legally by registering their bikes with licensed platforms.