India's Ministry Introduces Motor Vehicle Aggregator Guidelines 2025 for Ride-Hailing Platforms
India's Ministry of Road Transport and Highways has issued the Motor Vehicle Aggregator Guidelines 2025, bringing formal regulation to ride-hailing platforms. The new rules cover cancellations, driver training, vehicle safety, pricing, and more.
Under the new guidelines, both passengers and drivers face penalties for cancellations without valid reasons. Penalties are capped at Rs 100, equivalent to 10% of the fare.
Aggregators must now ensure all drivers are police-verified and provide at least 40 hours of induction training. Vehicles must be fitted with AIS-140 compliant GPS devices and panic buttons for safety.
State governments have been granted flexibility to tailor aspects such as fare ceilings, license fees for bike-taxi authorizations, and EV targets. Ride-hailing apps must also be available in regional languages and comply with India's new data protection framework.
Base fares remain under state control, but aggregators can now legally modulate prices in real-time. During peak hours, platforms can charge up to twice the base fare, and offer up to 50% discounts during off-peak hours.
Driver compensation has been standardized. Those using their own cars receive at least 80% of the fare, with aggregators allowed a 20% commission. If the aggregator owns the car, the driver's minimum share is 60%.
The guidelines also authorize state governments to permit the aggregation of non-transport motorcycles for passenger transport, effectively legalizing bike taxis across India. Aggregators are required to progressively convert their fleets to electric or alternative fuel cars in line with state or environmental targets.
The Motor Vehicle Aggregator Guidelines 2025 provide much-needed regulatory clarity for ride-hailing platforms in India. The rules aim to balance consumer protection, driver welfare, and market flexibility. State governments retain some control over pricing and local regulations.
