The Rajasthan government has ushered in a new regulatory era for the state's gig economy. On Wednesday, the state transport department officially notified the Rajasthan Motor Vehicles Aggregator Scheme Rules, 2025. This comprehensive policy brings cab aggregators, delivery service providers, and e-commerce entities under a structured legal framework aimed at protecting both workers and consumers.
Who is Covered and How to Get a License?
The new rules apply to any aggregator, delivery service provider, or e-commerce entity operating within Rajasthan that has at least 25 motor vehicles associated with its platform. To operate legally, these companies must now obtain a license from the state government, which will be valid for a period of five years.
For a streamlined process, the state will develop a dedicated online portal for single-window clearance of license applications, including the payment of fees and security deposits. Until this portal is ready, applications will be accepted through an offline mode. Companies must also have a corporate or branch office in Rajasthan and appoint a dedicated compliance officer to handle all monitoring and coordination under the new rules.
Key Provisions for Driver Welfare and Passenger Safety
The policy introduces several landmark provisions designed to ensure fair treatment and safety. One of the most significant mandates is the fare structure: the state government will determine fares, and at least 80% of the fare amount must be passed on to the driver. Payments to drivers must be settled daily, weekly, or fortnightly.
For passenger safety, aggregators are required to operate a 24x7 active control room and call centre. Apps must enable features for passengers to share live location and have a panic button that sends an alert directly to the police and the control room in emergencies. Furthermore, aggregators must provide accidental insurance of at least Rs 5 lakh for each passenger.
Driver welfare is addressed through mandatory insurance coverage. Aggregators and delivery service providers must ensure health insurance of Rs 5 lakh and accidental insurance of Rs 10 lakh for each driver, with the sum insured increasing annually as notified by the government. All drivers must possess valid driving licenses, and those driving passenger vehicles need a valid PSV badge.
Penalties for Violations and Trip Cancellations
The regulatory framework has teeth. Violations of the rules can attract financial penalties and may even lead to the cancellation of licenses. The rules also specifically address trip cancellations. If a ride is cancelled without a valid reason, a fine of up to Rs 100 can be imposed on either the driver or the passenger found to be at fault.
This move by the Rajasthan government marks a significant step towards formalizing the rapidly growing gig economy sector. By setting clear rules on earnings, safety, and insurance, the policy aims to create a more equitable and secure ecosystem for lakhs of gig workers and millions of users across the state.
