Cab aggregators will now be permitted to charge up to twice the base fare during peak traffic hours, as per the Motor Vehicles Aggregator Guidelines (MVAG) 2025 issued by the Ministry of Road Transport and Highways on July 1. Until now, the upper limit on surge pricing was capped at 1.5 times the base fare.
States have been advised to implement the updated guidelines within the next three months. The revised fare structure is aimed at giving platforms flexibility during high-demand periods, while maintaining an overall regulatory framework for pricing and operations.
The MVAG 2025 also addresses a longstanding regulatory gap by allowing the use of non-transport (private) motorcycles for passenger journeys via aggregators, subject to state government approval. According to the guidelines, “The state government may allow aggregation of non-transport motorcycles for journey by passengers as shared mobility through aggregators,” with the objective of reducing traffic congestion, lowering vehicular pollution, and improving access to affordable mobility and hyperlocal delivery.
States will have the authority to levy daily, weekly, or fortnightly fees on aggregators for the use of such motorcycles under Clause 23 of the guidelines.
Bike taxi operators like Rapido and Uber, who have operated in a regulatory grey zone in several states—including Karnataka, where a recent ban led to protests—have welcomed the move. Rapido called the clause a “milestone in India’s journey towards a Viksit Bharat,” saying the change would help improve last-mile connectivity and expand affordable transport in underserved areas.
Uber also lauded the revised guidelines as a step toward innovation and regulatory clarity.
“Timely adoption by states will be key to ensuring uniform implementation and building much-needed predictability for all stakeholders. We commend the ministry for its consultative and balanced approach,” a company spokesperson said.
The MVAG 2025 guidelines replace the 2020 version and reflect changes in India’s shared mobility landscape, including increased demand for bike taxis, e-rickshaws, electric vehicles, and flexible pricing models. The Ministry said the updated framework attempts to maintain a light-touch regulatory approach while ensuring safety, user security, and driver welfare.
