Maharashtra’s EV Bike Taxi Policy: Driving sustainable transportation

Partner: Kabeer Mathur, Senior Associate: Dhaval Mehta, Associate: Rajdeep Mukherjee

To promote sustainable mobility and strengthen urban transport systems, the Government of Maharashtra has introduced a framework regulating the operation of electric bike taxis across the state (Bike Taxi Policy).¹ This initiative forms part of a broader policy-driven push to encourage environmentally friendly alternatives within the urban mobility ecosystem.

The introduction of the Bike Taxi Policy is anticipated to foster investor confidence in the cab aggregator market and promote the growth of the electric vehicle (EV) ecosystem. While the Bike Taxi Policy marks a significant step towards transforming urban mobility, stakeholders will require certain clarifications in order to ensure its consistent and effective implementation.

Background

Under Section 93 of the Motor Vehicles Act, 1988 (MV Act), each state government is required to formulate rules and conditions for granting a license to operate as an aggregator.² Following a directive from the Bombay High Court,³ the Maharashtra Government constituted a committee to develop an aggregator policy for bike taxis. Based on the committee’s recommendations, the Maharashtra Cabinet approved the Bike Taxi Policy on 1 April 2025. The current policy applies to cities in Maharashtra that have a population of 1 lakh or more, and the state government is expected to publish separate regulations for smaller cities.

Key features of the Bike Taxi Policy

• Licensing requirements: Only 100% EVs may operate as bike taxis. The state transport authority will grant five-year licenses to aggregators having a minimum fleet of 50 EV two-wheelers.
• Bike-related conditions: The two-wheelers must:
  • have a fitness certificate, a valid license to operate as a public service vehicle, and vehicle insurance; and
  • be painted yellow and prominently display ‘bike-taxi’ along with the aggregator’s name and contact number.

  The maximum distance for each ride of the bike taxi is capped at 15 km.

• Driver eligibility and conditions: The driver must be between 20 and 50 years of age and must possess a valid license and badge issued by the regional transport authorities. Drivers are limited to a maximum of eight hours of driving per day. Aggregators will be responsible for conducting training and background checks of all their drivers.
• Safety requirements: Only one passenger (above 12 years of age) is allowed per two-wheeler. The aggregator must ensure certain safety standards, including:
  • GPS tracking, emergency contact facilities, and speed verification;
  • helmets for both the driver and the passenger;
  • insurance for accidents and fatalities, covering both the driver and the passenger;
  • safety measures for women; and
  • weather protection.
• Permission for bike pooling: The Bike Taxi Policy permits two wheelers that are not registered commercial vehicles to undertake bike-pooling services through an aggregator. Such trips are limited to four per day within city limits and two per day outside the city.

Aspects requiring further clarification

• Business model: Aggregator platforms typically operate as intermediaries – connecting customers with individual vehicle owners (i.e., drivers) through a digital platform. While the Bike Taxi Policy is silent on vehicle ownership, the provisions of the policy suggest a model where aggregators are to own vehicles and develop the physical operational infrastructure for the EV two-wheelers. Such conditions may require aggregators to restructure their business models and could potentially impact business economics. Additionally, the vehicle-level customisation and branding requirements under the Bike Taxi Policy may not be entirely compatible with the gig economy nature of aggregator businesses.
• Minimum infrastructure requirements: To be eligible for an aggregator license, aggregators are required to develop physical infrastructure for the EV two-wheelers, such as:
  • dedicated two-wheeler taxi stands indicating pick-up and drop-off locations;
  • charging stations; and
  • sufficient parking spaces.

  At present, there are no prescribed minimum standards or specifications for such safety standards or infrastructure.

• Women driver mandate: The Bike Taxi Policy also requires aggregators to progressively increase the proportion of women drivers to 50%. Clarifying the expected timelines for meeting this requirement will help aggregators plan and scale their operations in Maharashtra.
• Platform safety standards: While aggregators are required to ensure that their website/app meets ‘safety standards’, the Bike Taxi Policy does not specify the nature or threshold of such safety standards, nor does it clarify whether these will be formally notified at a later stage. A clarification on whether an aggregator’s compliance with the Information Technology Act, 2000 would be sufficient to meet this requirement would help aggregators in making product-level decisions in respect of their technology stacks.
• Usage of personal vehicles for pooling: The Bike Taxi Policy permits two wheelers that are not registered commercial vehicles to undertake bike-pooling services through an aggregator. These activities are to be facilitated by aggregators on a no-cost basis, i.e., the aggregator cannot make any profit on such trips. The nature and scope of such bike-pooling services is unclear – in particular, whether these vehicles would be exempt from certain conditions such as maximum distance, operating hours and driver permit-related norms. The commercial impact of such bike-pooling activities, including on an aggregator’s bike taxi business, would require further assessment.

Conclusion

While the Bike Taxi Policy marks a progressive step towards sustainable urban mobility, its compliance framework could present implementation-related challenges for aggregators to navigate, including significant capital expenditure and increased operational costs – which are divergent from the asset-light, platform business models typically adopted by aggregators. In view of this, certain clarifications and stakeholder consultation on the operational aspects of the Bike Taxi Policy may be required in order to promote the growth and increased adoption of bike taxi services in Maharashtra.

[1] Home Department, Government of Maharashtra’s GR no. MVR-0821/P.No.95/Pari-2

[2] Section 2(1-A) of MV Act defines “aggregator” as a digital intermediary or market place for a passenger to connect with a driver for the purpose of transportation.

[3] Order dated 2 January 2023 in the case of Roppen Transportation Services Private Limited & Anr. v State of Maharashtra & Ors.

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