Athira T S on Maharashtra’s Move to Regulate App-Based Bus Aggregators: “A Turning Point for Urban Mobility

The inclusion of contract carriage and passenger buses under Maharashtra’s draft Motor Vehicle Aggregator Rules, 2025 could mark a pivotal moment for app-based shuttle models such as Cityflo, Chalo, and others that have long operated in a regulatory grey zone.

Commenting on the development, Athira T S, in her remarks to Mint, observed that the draft rules address the earlier ambiguity surrounding the legality of using contract carriage permits for app-based operations. “By formally bringing such vehicles within the aggregator definition, Maharashtra effectively closes the loophole that led to enforcement crackdowns on private bus apps in recent years,” she noted.

The draft framework grants long-awaited legal recognition to app-based shuttle operators by formally integrating them within the aggregator ecosystem subject to valid permits, safety standards, and an eight-year vehicle age cap. This move is expected to enhance the financial viability of B2C bus-shuttle models by reducing compliance risks, enabling long-term fleet investment, and bolstering investor and commuter confidence.

For private bus operators, the draft rules offer a pathway into the organized, app-driven mobility sector, previously dominated by ride-hailing companies and state undertakings. This could pave the way for partnerships with corporate campuses, IT parks, and urban aggregators, while also encouraging innovation in fleet management, ticketing, and electric shuttle deployment.

While compliance costs and licensing requirements may increase the operational load on smaller startups, Athira emphasized that this policy direction represents a major shift toward legitimizing and mainstreaming app-based urban bus mobility in Maharashtra. The real test, however, will depend on implementation and regional enforcement once the rules are notified.

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