Private transport associations in Karnataka have opposed the planned Bengaluru entry of Vietnamese company Vingroup’s Green SM electric cab fleet, alleging that its proposed fare of Rs 8 per km could undercut existing rates and threaten the incomes of local cab and auto drivers.
The Federation of Private Transport Associations, Karnataka, raised the issue in a letter to the chief minister on Saturday. It asked the state government to examine whether the proposed pricing could amount to below-cost pricing by a dominant player and, if established, refer the matter to the Competition Commission of India under the Competition Act, 2002.
Green SM recently received an aggregator licence from the state transport department under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016. The licence is valid until September 2031. Green SM operates a fleet of electric cars and is a subsidiary of Vingroup, which also owns VinFast, an electric vehicle manufacturer.
The federation said the entry of a company-owned fleet would create competitive pressure for individual cab and auto drivers. It estimated that around eight lakh people depend on cab and auto operations in Bengaluru, with another three lakh working in the sector across other towns in Karnataka.
“The entry of a company-owned fleet will take away the trips on which these families live. Because the sector is unorganised, its workers have no unemployment benefit, no bargaining body and no safety net. Every lost trip becomes lost income,” the federation said in its letter.
The associations have asked the government to order a compliance audit of Green SM’s licence and limit its fleet to 100 vehicles. They have also sought an instruction that no additional registrations or vehicle attachments be permitted for the operator.
The federation further demanded that every Green SM vehicle be fitted with a digital meter displaying the prescribed fare list. It asked the transport department to verify whether fares charged by the company comply with the notified framework and to require disclosure of promotional or below-cost pricing.
The dispute places Bengaluru’s emerging electric mobility market alongside a regulatory question over how company-owned fleets should compete with individual driver-operators using app-based platforms. The transport department’s licensing framework, fare rules and any conditions attached to Green SM’s licence will determine the scope of the operator’s activities.
The letter does not establish that Green SM has violated competition law or fare regulations. It asks the government to investigate the pricing and compliance questions before allowing further fleet expansion. The next step sought by the associations is a response from the state government and a review by the transport department.
