Bengaluru cab unions seek probe into Green SM’s proposed low fares

Bengaluru: Vietnam-based Green SM’s proposed entry into Bengaluru’s cab service market has run into opposition from private transport associations in Karnataka, with driver unions warning that its low-fare model could threaten the livelihood of thousands of local taxi and autorickshaw operators.

The company, part of Vietnam’s Vingroup, has recently secured an aggregator licence from the Karnataka Transport Department under the Karnataka On-demand Transportation Technology Aggregators Rules, 2016. The licence is valid until September 2031. Green SM plans to operate an all-electric cab fleet and is reportedly considering a fare of Rs 8 per kilometre.

The Karnataka State Private Transport Associations Federation has written to Chief Minister DK Shivakumar seeking government intervention. It has questioned how a company could offer services at rates substantially lower than the prevailing market price and demanded an investigation into whether the proposed fares are below the actual cost of operations.

The federation has argued that if a dominant market player deliberately offers services below cost to attract customers and drive out competitors, it could amount to a violation of the Competition Act, 2002. It has urged the state government to refer the matter to the Competition Commission of India if the allegations are established.

According to the federation, Bengaluru has around eight lakh cab and autorickshaw drivers, while another three lakh operate in other cities across Karnataka. It fears that such a low-price strategy could make it difficult for local drivers to compete and sustain their livelihoods.

The unions have sought a compliance audit of Green SM’s licence and demanded that its fleet be restricted to 100 vehicles. They have also asked the government not to permit additional vehicle registrations or expansion of the fleet until the concerns are examined.

The federation wants the Transport Department to verify whether the company’s fares comply with government-notified pricing rules. It has also sought disclosure of the cost structure and details of any promotional pricing or fares offered below operating costs.

Green SM operates electric vehicles and is an affiliate of Vingroup, which owns electric vehicle manufacturer VinFast.

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