The Ministry of Road Transport and Highways has introduced the Motor Vehicle Aggregator Guidelines 2025, updating the earlier 2020 guidelines to keep pace with the rapidly evolving mobility sector in India. These revised guidelines apply to aggregators operating within any state and aim to create a regulatory framework ensuring the safety of passengers and the welfare of drivers while promoting innovation and sustainable transport.
To operate legally, aggregators must obtain a license through a central portal. Until this portal is operational, applications will be processed by the respective state governments. The application process requires submission of Form I, proof of application fee, and compliance with eligibility criteria such as being a registered company, LLP, or cooperative society of drivers or vehicle owners. A single license will be issued for the entire state, with decisions on applications expected within 90 days. If approved, the aggregator must pay a license fee of ₹5 lakh for new applications and ₹25,000 for renewals, along with a security deposit ranging from ₹10 lakh to ₹50 lakh based on fleet size.
The license will be valid for five years and can be renewed through Form II, subject to compliance checks. Aggregators must also fulfill several conditions before being granted a license, including conducting a 40-hour induction training for drivers, notifying the competent authority of service commencement, ensuring ₹5 lakh insurance coverage for passengers, and allowing drivers to work with multiple platforms.
There are strict compliance requirements regarding drivers and vehicles. Drivers must hold valid licenses, undergo police verification, medical and psychological checks, and must not have been convicted of serious crimes in the past three years. Aggregators must ensure that each driver has ₹5 lakh in health insurance and ₹10 lakh in term insurance. A refresher training program must be conducted annually.
Vehicles must have valid registration, fitness certificates, insurance, pollution certificates, and must be no older than eight years. They should also have safety features like tracking devices, panic buttons, and be compliant with emission norms. All data must be authenticated with the VAHAN portal.
Aggregators must maintain websites and apps with multilingual support, data protection in line with the Digital Personal Data Protection Act, 2023, and customer support services. Apps must allow live location sharing, show driver photos, and have mechanisms for safety alerts and driver identity verification.
Fare regulation will be based on a base fare set by the state government, allowing dynamic pricing within defined limits. Drivers must receive at least 80% of the fare unless the vehicle is owned by the aggregator, in which case they must receive at least 60%.
Penalties are defined for unjustified ride cancellations by drivers or passengers. Aggregators must also work toward electric mobility and include Divyangjan-friendly vehicles in their fleets. Licenses can be suspended or cancelled for non-compliance, with appeal mechanisms in place.
These guidelines aim to ensure safer, more inclusive, and environmentally responsible shared mobility services across India.
