Vinfast’s Green SM runs into trouble with taxi unions in Bengaluru - Why is the app-based EV cab is facing opposition?
Vietnamese EV maker Vinfast’s cab service Green SM is set to enter another Indian metro city. After making its India debut in Delhi-NCR in June this year and launching operations in Hyderabad earlier this month, Green SM is expanding it ride-hailing service to Karnataka’s capital, Bengaluru.
Green SM has received a licence from the Karnataka Transport Department to operate app-based cab services in the state. After the clearance under Karnataka On-demand Transportation Technology Aggregators Rules, 2016, Green SM is eyeing an on-road debut in Bengaluru in late November or early December.
But the entry of the all-EV fleet of cyan-colored VinFast electric SUVs into the home turf of Ola, Rapido, and Namma Yatri has run into trouble with local taxi unions.
They have alleged that Green SM, which offers a minimum fare of around ₹8 per km, will undercut the current auto fares in Bengaluru, which range from ₹13 to ₹15 per km, while cab fares are around ₹20 to ₹23 per km. Bike taxi fares in the city start at ₹10 per km.
According to the unions, Green SM has already brought around 5,000 electric cabs to Bengaluru.
Taxi unions, including the Karnataka Rajya Chalakara Parishath and Peace Auto Union, protested against the move on Wednesday, arguing that the entry of another major aggregator could intensify competition and affect drivers’ incomes amid rising operating costs. They have urged the government to reconsider and withdraw the permission.
K Somashekar, president of the Karnataka Rajya Chalakara Parishath, questioned whether the vehicles had undergone the mandatory inspections. “All cabs must be equipped with fare meters, display boards and prescribed GPS devices,” he was quoted as saying by The Hindu.
Unlike other app-based cab aggregators in India, including Uber, Ola and Rapido, where drivers are classified as independent contractors or driver-partners, those behind the wheels of Green SM are salaried employees of the company. Drivers receive a monthly salary ranging from ₹35,000 to ₹40,000 based on meeting operational and service metrics, including the number of daily bookings and kilometers covered. In addition to the salary, Green SM drivers also receive ESIC or private medical coverage up to ₹5 lakh alongside accidental insurance.
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