The Motor Vehicle Aggregator Guidelines 2025 are the national rulebook the Ministry of Road Transport and Highways issued on 1 July 2025 for app cab and bike taxi platforms like Ola, Uber, Rapido and inDrive. In plain terms, a platform may charge you up to 2 times the base fare at peak times, must keep any cancellation fee to 10 percent of the fare or ₹100, and must pass at least 80 percent of the fare to a driver who owns the vehicle. There is one catch most headlines skip: these are guidelines, not a fresh law, so they protect you only once your own state notifies them. Source: the MoRTH guidelines PDF.
Quick take, the 2025 rules did not cut surge pricing. The legal peak cap actually rose from 1.5 times to 2 times the base fare. What genuinely changed for riders is a clearer set of pay and cancellation limits, plus a national doorway for private bike taxis that each state can open or keep shut.
Most of what is being sold as brand new was already written into the 2020 aggregator guidelines. Here is an honest side by side of the five things riders ask about most.
| Rule | 2020 guidelines | 2025 guidelines |
|---|---|---|
| Peak surge cap | Up to 1.5 times base fare | Up to 2 times base fare |
| Non-peak fare floor | Not below 50 percent of base fare | Not below 50 percent of base fare |
| Cancellation fee | 10 percent of fare, max ₹100 | 10 percent of fare, max ₹100, both sides |
| Driver share of fare | At least 80 percent to the driver | 80 percent driver-owned, 60 percent aggregator-owned |
| Private bike taxis | Not covered, effectively not permitted | States may permit private two-wheelers |
Read the surge row carefully. The ceiling went up, not down. Under the 2020 guidelines a platform could legally charge 1.5 times the base fare at busy hours. From 2025 that legal peak is 2 times the base fare. The floor stays the same: fares cannot drop below 50 percent of the base fare, so drivers are not pushed into loss-making trips. The base fare itself is fixed by your state and covers at least the first three kilometres, to account for the distance a driver travels to reach you.
Once your state notifies these guidelines, you can expect the following as a rider.
Keep a simple habit ready: screenshot the fare estimate before you book and the final bill after. Those two images are the whole evidence file if a platform overcharges you.
The most talked-about change is bike taxis. The 2025 guidelines let a State Government allow the aggregation of non-transport motorcycles, the ordinary white number plate two-wheelers, for carrying passengers through apps. This is a permission, not an automatic all-India green light. If your state does not notify it, a private bike taxi can still be treated as illegal there, and past bans in some cities were built on exactly that gap.
That state-by-state nature runs through the whole document. The guidelines are advisory. MoRTH advised every state to adopt them before 1 October 2025, but each state has to notify its own rules to give them legal teeth. So your real protection depends on your state. Before you rely on a fare cap or a bike taxi ride, it is worth checking whether your state transport department has actually notified the 2025 rules yet.
Rider fairness and driver welfare are linked in these rules, so a few driver-side points are worth knowing. A driver who owns the vehicle must get at least 80 percent of the fare, and 60 percent is the floor when the aggregator owns the vehicle, with settlements paid on a daily, weekly or fortnightly basis. The guidelines also require the platform to provide each driver a minimum health insurance cover of ₹5 lakh and term insurance of ₹10 lakh, with annual increases. A driver who is paid fairly and insured is less likely to demand off-app cash or refuse a metered ride, which is a quieter win for riders.
This page explains the rules. If a platform actually breaks one, you do not fight it here, you escalate through the consumer channels. Keep it simple:
Yes, under the 2025 guidelines a platform may charge up to 2 times the base fare at peak times, and not below 50 percent of the base fare at off-peak times. This is a higher legal ceiling than the 1.5 times allowed under the 2020 rules, but it only applies as law in states that have notified the 2025 guidelines.
Yes, but it is capped. If you cancel without a valid reason, the fee is 10 percent of the fare and never more than ₹100. The same limit binds the driver if they cancel without a valid reason, so the fee cannot be used to punish you for a driver-side cancellation.
Not automatically. The 2025 guidelines let each State Government permit private white-plate two-wheelers as app bike taxis, but the state must actually notify that permission. Check your state transport department before assuming a private bike taxi is legal where you live.
No. They are central guidelines, not a self-executing law. MoRTH advised states to adopt them before 1 October 2025, and each state must notify its own rules. Until your state does, your real protection on fares, cancellations and bike taxis depends on the older rules or none at all.
The base fare is set by your state government and covers at least the first three kilometres of a trip. Every cap in these rules, the 2 times ceiling and the 50 percent floor, is calculated on that state-fixed base fare, not on a number the app invents.
For a plain-language walk through your everyday rights as a citizen, keep The RTI Playbook handy. Primary source for every figure above is the MoRTH Motor Vehicle Aggregator Guidelines 2025.