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The Ministry of Road Transport and Highways notified the Motor Vehicle Aggregator Guidelines 2025, revising the 2020 norms to reflect new mobility trends.
Key provisions
- Driver welfare: Drivers must receive at least 80 per cent of the fare if using their own vehicle and a minimum of 60 per cent when using aggregator‑owned vehicles. Aggregators must provide ₹5 lakh health insurance and ₹10 lakh term insurance for drivers, and offer quarterly training to low‑rated drivers.
- Passenger protection: Mandatory travel insurance of ₹5 lakh per passenger; grievances to be resolved within three days; fares charged only for the distance travelled.
- Regulated fare structure: State governments fix base fares; aggregators may discount or surge price within a range (50 per cent below to twice the base fare).
- Penalties for cancellations: A 10 per cent penalty on either party for unjustified cancellations, capped at ₹100, with reasons for cancellation displayed on the app.
- Bike‑taxi recognition: Non‑transport motorcycles are allowed for ride‑hailing (subject to state approval), providing legal clarity for companies like Rapido.
- Electric‑vehicle promotion & accessibility: States may mandate annual EV adoption targets and aggregators must include vehicles accessible to persons with disabilities.
- Enhanced driver screening: Drivers undergo police verification, medical and psychological tests and receive regular training.
- Centralised licensing: A portal will manage licences, renewals and compliance. Penalties range from ₹1 lakh to ₹1 crore, with licence suspension for repeat violations.
The new guidelines aim to protect gig workers and passengers, regulate dynamic pricing, promote EVs and make ride‑hailing more inclusive.
