VinFast Green SM Faces Pushback from Bengaluru Taxi Unions

Vietnamese electric vehicle manufacturer VinFast is preparing to introduce its ride-hailing service, known as Vinfast Green SM, to another major Indian metropolis. Following its initial entry into Delhi-NCR in June and a subsequent launch in Hyderabad earlier this month, the company is turning its attention to Bengaluru, the capital of Karnataka.

The firm has successfully obtained a licence from the Karnataka Transport Department to facilitate app-based cab operations across the state. Granted under the Karnataka On-demand Transportation Technology Aggregators Rules of 2016, this regulatory clearance positions the cyan-colored electric SUV fleet for an on-road launch in Bengaluru between late November and early December.

However, the introduction of the all-electric fleet into a market dominated by established players such as Ola, Rapido, and Namma Yatri has encountered significant resistance from regional transport unions. Representatives from organizations like the Karnataka Rajya Chalakara Parishath and the Peace Auto Union staged demonstrations against the upcoming rollout, expressing apprehension over heightened competition and potential reductions in driver earnings amid escalating operational expenses.

VinFast Green SM faces opposition from Bengaluru taxi unions over proposed fare structures and market competition.

Critics pointed out that the new service proposes a starting fare of approximately ₹8 per kilometre, which contrasts sharply with existing auto-rickshaw rates of ₹13 to ₹15 per kilometre and standard cab tariffs ranging between ₹20 and ₹23 per kilometre. Bike taxi rates in the area begin at ₹10 per kilometre. Furthermore, local union leaders have alleged that the company has already deployed about 5,000 electric cabs to the city.

K Somashekar, president of the Karnataka Rajya Chalakara Parishath, raised questions regarding mandatory regulatory checks for the incoming vehicles, emphasizing the necessity of operational fare meters, display boards, and designated global positioning systems.

Unlike traditional aggregators where drivers operate as independent contractors, VinFast employs its drivers directly on a salaried basis. These personnel earn a monthly wage between ₹35,000 and ₹40,000 tied to specific performance metrics like completed trips and distance traveled. Additionally, the drivers are provided with medical coverage up to ₹5 lakh through ESIC or private policies, alongside accidental insurance.

Why it matters

The entry of VinFast Green SM into Bengaluru represents a notable shift in the urban mobility landscape, introducing a salaried employment model for drivers alongside an all-electric fleet. This development directly impacts local transport workers and existing aggregators by intensifying market competition and prompting debates over urban fare structures in southern India.