MVAG 2025: Big Changes for Ola, Uber & Rapido Users

New rules from 1 July 2025 let Ola, Uber, and Rapido charge up to 2× fares in peak hours. They also legalise bike taxis (state approval) and add stricter safety and insurance norms.

On 1 July 2025, the Ministry of Road Transport & Highways unveiled the Motor Vehicles Aggregator Guidelines, 2025 (MVAG 2025), introducing major changes for cab and bike taxi services across India.

The most significant update is surge pricing. Popular apps like Ola, Uber, and Rapido can now legally charge up to 2× the base fare during peak hours, compared to the earlier cap of 1.5×. The base fare, usually ?18–?21 per km in metros, is fixed by state governments. At the same time, fares cannot fall below 50% of the base fare in off-peak hours, ensuring drivers are not underpaid.

Another milestone is the official approval for private motorcycles to be used as bike taxis, if permitted by states. This gives legal clarity to services like Rapido and Uber Moto, previously operating in a grey area.

MVAG 2025 also mandates safety and fairness: mandatory health and life insurance for drivers, GPS tracking, yearly training, penalties for cancellations, and 24×7 complaint systems. Cab companies must also disclose fare calculations, driver payouts, and store ride data in India.

The Centre has urged states to implement the guidelines by October 2025, marking a big step toward safer, fairer, and more inclusive ride-sharing services in India.

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