Bengaluru’s taxi unions have opposed the entry of Vietnam-based electric mobility company Green SM, raising concerns over driver livelihoods, low fares and alleged violations of Karnataka’s transport regulations.
The company, the mobility arm of conglomerate Vingroup, has received an aggregator licence from the Karnataka Transport Department, valid until September 2031, to operate app-based taxi services in the state. Its proposed entry, expected by late November or early December 2026, could intensify competition in a market already served by Ola, Uber, Rapido and Namma Yatri.
Taxi associations, including the Karnataka Rajya Chalakara Parishath and Peace Auto Union, have questioned whether the company’s vehicles and drivers meet mandatory requirements, while also expressing concern about the impact of cheaper electric cabs on existing operators’ earnings.
Transport Minister Bhairathi Suresh has directed officials to produce the licensing documents for scrutiny after stating that he was unaware the approval had been issued. While transport officials have confirmed the licence, the allegations raised by driver associations remain unverified.
Competition Concerns
Green SM’s proposed pricing has emerged as one of the biggest concerns for existing transport operators. According to reports, the company is expected to offer fares starting at around ₹8 per kilometre.
This is considerably lower than the rates currently cited for other transport services in Bengaluru, where auto fares range between ₹13 and ₹15 per kilometre, while conventional cab fares are around ₹20 to ₹23 per kilometre.
Taxi associations fear that such pricing could make it difficult for independent drivers to retain customers, particularly as they continue to deal with vehicle loan repayments, maintenance expenses and other operating costs. The controversy also stems from Green SM’s business model.
Unlike conventional ride-hailing platforms, which connect passengers with drivers who generally own or operate their vehicles, Green SM intends to deploy its own fleet of electric vehicles and employ drivers directly. The company operates the VinFast Limo Green, a seven-seater electric vehicle, and has already expanded its Indian operations to Delhi-NCR and Hyderabad.
According to reports, 100 of its electric taxis have been registered with Bengaluru’s Indiranagar Regional Transport Office. However, Karnataka Rajya Chalakara Parishath president K. Somashekar has alleged that the company has brought around 5,000 electric cabs into the city, with vehicles reportedly stationed in areas including Kengeri and Electronics City.
This larger figure has not been independently verified. The associations have also questioned whether the vehicles have undergone the necessary inspections and whether they have been equipped with mandatory digital fare meters, display boards and GPS devices. Somashekar told Moneycontrol that the aggregator rules must be strictly enforced and called for a uniform and transparent fare structure.
The unions have demanded that the government review the company’s approval and take action if any regulatory violations are established.
Regulatory Questions
At the centre of the dispute is Karnataka’s regulatory framework for app-based transport services. The state introduced the Karnataka On-Demand Transportation Technology Aggregators Rules in 2016 to regulate companies that connect passengers with commercial vehicle operators through digital platforms.
These rules cover licensing, vehicle permits, driver eligibility and passenger safety requirements, including GPS tracking and emergency facilities. In 2024, Karnataka also introduced a uniform fare structure for app-based taxis based on vehicle prices.
Under the notified structure, vehicles costing up to ₹10 lakh attract a base fare of ₹100 for the first four kilometres, followed by ₹24 for every additional kilometre. For vehicles priced between ₹10 lakh and ₹15 lakh, the base fare is ₹115, followed by ₹28 per additional kilometre. Vehicles costing more than ₹15 lakh attract a base fare of ₹130 and ₹32 for every additional kilometre.
The order also restricts aggregators from charging passengers surge pricing. This framework makes the question of how Green SM’s reported ₹8-per-kilometre pricing will be implemented particularly important. However, the proposed rate should not automatically be treated as a confirmed final fare applicable to every ride. The licensing controversy escalated after representatives of the Karnataka Rajya Chalakara Parishath and Peace Auto Union approached Transport Minister Bhairathi Suresh with their complaints.
According to India Today, the minister said he was unaware that the licence had been issued and contacted Transport Department Commissioner Selvamani to seek details about the approval. He subsequently directed officials to produce the relevant files for scrutiny.
The minister also warned that established aggregators, including Ola and Uber, could be asked to leave Karnataka if they were found violating transport regulations. Meanwhile, senior transport department officials have maintained that Green SM received its licence after fulfilling the prescribed requirements.
The licence, according to Moneycontrol, remains valid until September 2031. This difference between the department’s stated position and the unions’ allegations makes an examination of the approval documents important. Green SM’s parent company, Vingroup, was unavailable for comment when Moneycontrol published its report on November 11.
The Logical Indian’s Perspective
The arrival of electric taxis in Bengaluru reflects the changing possibilities of urban transport, where cleaner vehicles and potentially more affordable journeys could benefit thousands of commuters. However, technological progress should not come at the cost of overlooking the people whose livelihoods depend on the same transport system. Independent taxi drivers often invest substantial savings or take loans to purchase their vehicles, and their ability to repay these commitments depends on a steady flow of customers.
Their concerns about competition, therefore, deserve to be heard rather than dismissed as resistance to innovation. At the same time, a new company should not be prevented from entering a market simply because existing operators fear competition. A fair transport system must allow innovation, encourage better services and give commuters more choices, while ensuring that every company follows the same rules.
The Karnataka government must examine the licensing concerns transparently, clarify the applicable fare requirements and communicate its findings to all stakeholders. Any genuine violations should be addressed through due process, without favouritism or selective enforcement.
Equally, dialogue between transport authorities, companies and driver associations could help identify ways to protect livelihoods while supporting the transition to electric mobility. Cleaner transport and economic security should not be treated as competing goals. As Bengaluru prepares for another change in its ride-hailing market, can the government create a system where affordable electric mobility, fair competition and the dignity of existing drivers move forward together?
