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Govt Clears Bike Taxis, but Rapido, Uber Must Wait for State Green Light

  • On July 1, the central government introduced new regulations permitting states to authorize the use of private motorcycles for passenger transportation through app-based platforms, providing legal clarity for bike taxi services.
  • This move follows states like Karnataka banning bike taxis since June 16 and aims to clarify the legal status, shifting permission entirely to state governments.
  • The guidelines empower states to authorize services, impose fees on aggregators, and require drivers to meet legal, safety, and insurance standards.
  • Uber called the guidelines a 'forward-looking step' for innovation, and Rapido described the policy as a milestone creating flexible jobs and reducing congestion and pollution.
  • The outcome depends on states' timely adoption, which will enable legal bike taxi operations, boost affordable urban mobility, and formalise the gig economy across India.
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Govt clears bike taxis, but Rapido, Uber must wait for state green light

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Moneycontrol broke the news in India on Tuesday, July 1, 2025.
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