Story so far
With a surge in grievances voiced by taxi and auto drivers against private ride-hailing platforms, Karnataka’s Minister of Transport Ramalinga Reddy recently announced a plan by the State Transport Department to create its own taxi and auto booking application, similar to that of private cab aggregators.
The announcement has now evolved into a concrete plan, as the Transport Department has formally requested the e-Governance Department to commence the creation of the mobile application and ensure its launch within six months.
Why is the Karnataka government developing an aggregator app?
Ride-hailing applications are typically owned and operated by private companies, with some exceptions like the Namma Yatri auto-hailing app that is operated by drivers’ union.
The dissatisfaction among cab and auto drivers with private ride-hailing apps primarily stems from the significant commissions claimed by the company. Unions representing cab and auto drivers have consistently alleged that the commissions levied by cab aggregators for each trip are exorbitant, posing unfavourable prospects for the drivers’ earnings.
M. Manjunath, president of Adarsha Auto and Taxi Drivers’ Union, told The Hindu, “Before these companies came into the market, there was a friendly bond between customers and drivers. Now, it has gone since they started to charge exorbitant prices in our name. They charge ₹100 per two kilometres, and give ₹30 to the drivers. We are against these practices as both the customers and drivers should not be burdened.”
With the escalating complaints against private cab and auto aggregators, Mr. Reddy said the government resolved to introduce a government-backed ride-hailing application. He believes that this initiative will benefit both passengers, and cab and auto drivers alike.
What does the government say?
In one month, Mr. Reddy has convened two rounds of meetings involving cab and auto unions, as well as private transport unions and federations. The primary agenda of these discussions was to deliberate upon and resolve their concerns regarding road tax, implications of the Shakti scheme (free transport for women in government buses), and matters pertaining to cab aggregator applications.
In the meeting, auto drivers and owners’ unions demanded a ban on illegal bike taxis across Bengaluru. They also want a ban on aggregators who charge more than 5% commission of the total fare.
Mr. Reddy told The Hindu, “We have decided to develop an app similar to private cab aggregators since auto and cab drivers have been facing many issues. Especially, the commission paid to the cab aggregators is very high, and our taxi and auto drivers are not happy.”
How will the government develop the app?
The Transport Department has already started the groundwork to build the app. The Transport Department has asked the e-Governance Department to initiate the development of the mobile application and launch it in six months.
Mr. Reddy said, “The e-Governance Department will be asked to develop the app since the department has been developing government-related apps. I am organising a meeting soon with the e-Governance Department. This app will incorporate a range of features, particularly those dedicated to enhancing the safety and security of passengers. We are also planning to take help from private agencies to run the app.”
Transport Department officials are in the process of planning a visit to Kerala to study the government-operated Kerala Savari app model. In 2022, the Kerala government introduced Kerala Savari, the country’s first online taxi service owned by a State Government.
What auto and cab drivers say
The auto and cab drivers seem happy with the government’s intention to develop a ride-hailing application. T.M. Rudramurthy, General Secretary of the Auto Rickshaw Drivers’ Union of Bengaluru, welcomed the government’s decision. “We already run the successful Namma Yatri app. The government’s plan for an auto and taxi aggregator app will further help auto drivers, as there is a huge demand for urban transport in Bengaluru,” he told The Hindu.
In 2022, under the umbrella organisation of the Bengaluru Auto Drivers’ Unions and the Welfare Associations’ Federation, they demanded that the Transport Department blacklist illegal apps and white-board bike taxi services, and create its own transport app to provide citizen-friendly services under government guidelines.
However, during that period, the Transport Department did not have the intention of creating the application. Consequently, this gap led to the introduction of the Namma Yatri app by the Auto Rickshaw Driver Union (ARDU). This app was developed utilizing the Open Network for Digital Commerce (ONDC) protocol, with assistance from Juspay Technologies Private Limited.
Activists and commuters give positive nod to the plan
The plan by the Karnataka government to develop a taxi and auto booking application has elicited favourable reactions from both activists and commuters. Although regarded as a commendable enhancement to the transportation system, there are appeals for the government to engage stakeholders in consultations before progressing with the endeavour.
Vinay Sreenivasa, member of Bengaluru Bus Prayanikara Vedike, suggested that while the idea holds promise, the government must consult auto drivers to ensure a smooth implementation.
Tara Krishnaswamy, co-founder of Citizens for Bengaluru, said, “This idea can be beneficial for both passengers and drivers. Drivers could potentially earn 20-30% more compared to private aggregators, and have the freedom to accept rides. It could also ease the longstanding issues of kerb-side taxis in Bengaluru, and the non-metered autos. Kerala has already implemented a similar system, and it has been successful.”
Do other State Governments run ride-hailing apps?
In August last year, Kerala launched Kerala Savari, the country’s first online taxi service owned by a State Government, to ensure fair and decent service to passengers along with fair remuneration to auto-taxi workers.
The app is operated by the Motor Workers’ Welfare Board under the aegis of the Labour Department. Kerala Savari ensures safe travel for commuters at government-approved fares without any surge pricing. According to Kerala Savari official website, the application lets users book a vehicle, make payment through cash or cashless methods, and share trip details with their contacts, and travel at fares laid down by the government without any surge or hidden pricing. A police clearance certificate is mandatory for drivers joining the app, apart from the required training.
A few months ago, the Goa government also launched a mobile application, which is a common platform for the entire taxi industry in the State.
