Bengaluru cab unions protest Green SM’s proposed low-fare model

The proposed entry of Vietnam-based Green SM into the Bengaluru cab market has triggered significant opposition from local transport groups. As the city continues to expand its infrastructure, including developments like the Bengaluru Metro, the arrival of a new electric vehicle operator has raised alarms among thousands of traditional taxi and autorickshaw drivers who fear for their livelihoods.

Green SM, a subsidiary of the Vietnamese conglomerate Vingroup, recently obtained an aggregator licence from the Karnataka Transport Department under the 2016 technology aggregator rules. This permit remains valid until September 2031. The company intends to deploy an all-electric fleet and is reportedly considering a fare structure of Rs 8 per kilometre, a rate that has drawn immediate scrutiny from industry stakeholders.

Local unions fear Green SM's low-fare model threatens the livelihoods of thousands of Bengaluru cab drivers.

Concerns over market competition

The Karnataka State Private Transport Associations Federation has formally petitioned Chief Minister DK Shivakumar, requesting urgent government intervention. The federation questions how a new entrant can offer services at prices significantly lower than current market rates. They have demanded a thorough investigation into whether these fares fall below the actual cost of operations, which could potentially violate the Competition Act, 2002, if deemed a strategy to drive out competitors.

With approximately eight lakh cab and autorickshaw drivers in Bengaluru and an additional three lakh across the state, the federation warns that such pricing could destabilize the local transport ecosystem. The unions are calling for a compliance audit of Green SM’s licence and have requested that the government restrict the company’s fleet to 100 vehicles. Furthermore, they have asked the Transport Department to verify if the proposed pricing adheres to government-notified rules and to disclose the company's cost structure.

Why it matters

The entry of a major international player like Green SM, which is affiliated with the electric vehicle manufacturer VinFast, represents a significant shift in the competitive landscape of Karnataka’s transport sector. The outcome of this dispute will determine whether new entrants can utilize aggressive pricing models to capture market share or if existing regulatory frameworks will prioritize the protection of local operators.

For residents and drivers in Bengaluru, this conflict highlights the tension between adopting new, sustainable technology and maintaining the economic stability of the existing workforce. The government's response to these demands for transparency and fleet restriction will set a precedent for future transport aggregators operating within the state.