Although App-Based Bike Taxis are permitted in Maharashtra, they are not yet operating in the major cities of Maharashtra because the State recently legalised only Electric Bike taxis and is still in the process of licensing aggregators under its new rules. Last month few aggregators applied for a license for Mumbai and Pune cities, but they were rejected because they did not meet the guidelines issued by the government. In the meantime, the State has actively cracked down on illegal services and continues to enforce a ban on unlicensed operators.
Key Features of The Bike Taxi Policy
- 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 public service vehicle, and vehicle insurance, and
-be painted yellow and prominently display ‘bike taxi’ along with aggregator’s name and contact number
The maximum distance for each ride 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 maximum of eight hours 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
- GPS tracking, emergency contact facilities, and speed verifications.
- Helmets for both driver and passenger.
- Insurance for accidents and fatalities, covering both the driver and the passenger.
- Safety measures for women.
- Weather protection.
- 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.
Reason for Delay in Operations:
- Policy and licensing rollout– The Maharashtra government formally notified the Maharashtra Bike-Taxi Rules 2025, on 4th July 2025, to regulate the sector. Previously, the State lacked an official policy, leading to ban in Jan 2023. While the new rules pave the way for services, aggregators must complete the licensing process which include a fee of Rs 1 lakh and security deposit of Rs 5 lakh before launching.
- Transition to electric vehicle– The new policy mandates that only 100% electric two wheelers can operate as bike taxis in Maharashtra. This requires aggregators like Ola, Uber, and Rapido to adapt their business models and build new EV fleets, which will take time.
- Enforcement against illegal operators– After the 2023 ban, many app based companies continued to operate without license. In July Transport Minister conducted a sting operation to expose illegal operations, which led to a new crackdown by the transport department. This action underscored the government’s strict stance against non-compliant services.
- Legal challenges– The ban and licensing issues have been subject to ongoing legal battles. In July 2025, the Bombay High Court upheld the State’s ban and criticized the petitioners (including some Auto drivers) seeking to curb bike taxis, but ultimately, the services cannot operate, the court again directed the government to file an affidavit to ensure enforcement against illegal operators.
Presently Bike taxis are operating in the few cities of the States of Goa, Haryana and West Bengal.
Future Outlook
While the Bike Taxi Policy make 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.
Despite the current lack of widespread operation, legal electric bikes are expected to launch in few cities of Maharashtra soon. With 2025 rules now in effect, the path is clear for aggregators to complete the licensing process. Official monitoring and compliance checks are expected to be fully functional before services roll out for public.
Waiting for your feedback on this blog.
Anil Malik
Mumbai, India
1st September 2025