HYDERABAD: Despite the Union government unveiling the Motor Vehicle Aggregator Guidelines (MVAG) 2025 nearly a year ago, the state government has dragged its feet before finally forming a transport department committee. This panel, established just two months ago, is now expected to submit its report next month.
According to sources, the committee is currently examining several critical issues, including the operation of white-board private vehicles on aggregator platforms, fare regulations, and pricing slabs.
It is also assessing driver welfare measures and the practical challenges associated with implementing the safety and compliance requirements prescribed under the Central framework. The committee is attempting to evolve a custom regulatory framework suited to Telangana’s transport ecosystem while balancing passenger interests, driver welfare, and the business concerns of aggregators.
The MVAG 2025 replaced the earlier 2020 guidelines, introducing a comprehensive regulatory architecture for ride-hailing services that covers aggregator licensing, passenger safety, driver welfare and fare regulation. While several states have either adopted or adapted this framework, Telangana has so far refrained from issuing corresponding regulations. This issue has acquired significant prominence following the enactment of the Telangana Platform-Based Gig Workers Act, 2026.
Transport sector stakeholders note that although the new legislation provides a vital social security and welfare mechanism for platform workers, the State still lacks a dedicated framework governing ride-hailing aggregators.
While the gig workers law focuses strictly on worker welfare, the MVAG specifically addresses transport regulation, passenger safety, fare structures, and aggregator operations. A major structural issue currently under examination is the rapid shift by ride-hailing companies toward a Software-as-a-Service (SaaS) model.
Telangana Gig and Platform Workers Union president Shaik Salauddin stated that major platforms such as Uber and Ola have increasingly shifted from the traditional commission-based system. This transition has created complex regulatory questions regarding the implementation of the MVAG’s revenue-sharing provisions.