Bengaluru’s private transport associations have opposed the proposed entry of Vietnam-based Green SM, seeking limits on its fleet and regulatory scrutiny over licences and fares amid concerns that a company-owned electric taxi service could threaten the livelihoods of independent taxi and autorickshaw operators.
The Federation of Karnataka State Private Transport Associations has submitted a representation to the chief minister, asking the government to cap Green SM’s fleet at 100 vehicles. It has also sought an audit of the company’s licence compliance and a review of its proposed fare structure.
Green SM is an electric taxi service operated by Vietnam-based Vingroup. The federation’s objection centres on the difference between a corporate-owned fleet and individual operators who purchase vehicles through bank or non-banking financial company loans. These drivers must meet regular costs including equated monthly instalments, insurance, permits, maintenance and fuel, the association said.
According to the federation, individual drivers depend on the number of trips they complete each day and are therefore vulnerable to fluctuations in demand. It argued that Green SM could have an advantage through access to corporate capital, bulk vehicle purchases, its own app and fleet-management systems. Those resources, the association said, could allow the company to sustain losses for longer and offer fares that smaller operators would find difficult to match.
The federation has also questioned reports of fares beginning at Rs 8 per kilometre. It argued that such rates could fall below the actual cost of operating a taxi, although the supplied report does not establish Green SM’s final fare structure or confirm whether the reported rate has been officially announced.
The association warned that a fare war could force independent taxi and autorickshaw operators to reduce prices, default on loan repayments or leave the sector. It estimated that nearly eight lakh Bengaluru families depend on the taxi and autorickshaw economy, though the representation’s calculation was not independently verified in the report.
The dispute places the state government in the position of balancing two competing concerns in Bengaluru’s urban transport market. Existing operators are seeking protection from a new, better-capitalised competitor, while passengers have been calling for more choices and lower fares.
Several commuters have expressed support for additional transport operators on social media. One user cited difficulties with autorickshaws accepting trips or using meters, arguing that more cab operators would benefit passengers. Another described the opposition as driven by the commercial interests of existing operators rather than commuter concerns.
The representation highlights a recurring regulatory challenge for app-based urban transport: ensuring competition and reliable service for passengers while protecting drivers who carry vehicle debt and operate with limited financial buffers. The immediate questions before the authorities are whether Green SM meets all licensing requirements, how its fares will be assessed and whether any fleet restriction is legally or administratively justified.
The Karnataka government has yet to announce its response to the federation’s requests. Any decision on the proposed fleet cap, licence audit or fare scrutiny will determine how Green SM’s entry is handled in Bengaluru’s already contested taxi and autorickshaw market.
