Karnataka Government to Introduce its Own Ride-Hailing Service to Compete with Ola and Uber

Karnataka’s Transport Minister Ramalinga Reddy revealed on Wednesday that the state plans to create its own ride-hailing app, posing a significant challenge to Ola and Uber. This alternative app aims to compete with the popular private cab-hailing companies that have gained popularity in recent years. The decision was made after a meeting with unions representing autorickshaw, cab, and bus drivers on July 31, during which their concerns about the exorbitant commissions charged by these private aggregators were raised.

Announcing his decision, Reddy said, “An app like Ola and Uber is a decision taken because autorickshaw drivers and taxi drivers are facing a lot of problems due to high fees.”

Ola, Uber problems

At the grievance meeting, autorickshaw and taxi drivers expressed their concerns about exploitation and high fees charged by Ola and Uber. Reddy highlighted a case where the driver got a compensation of only Rs. 450 Rs. 800 and the rest directly to the company in question. Reddy acknowledged these problems and said he would take them to Chief Minister Siddaramaiah.

Reddy also said that his department is in talks with the Bangalore Metro Rail Corporation Limited (BMRCL) to set up autorickshaw stands at metro stations at various locations, which could facilitate commuting for commuters.

Transport unions have raised demands such as extending the Shakti system to private buses, replacing tickets for women and banning illegal bike taxis in Bengaluru. In addition, the unions are also demanding a 5 percent cap on fees charged by private collectors.

Other applications

Karnataka is not the first state to try to end the monopoly of private taxi companies by launching its own app. The Kerela Savari application was launched by the Kerela government in 2022 as a profitable alternative to Ola, Uber and other private companies. Also, the Bengaluru-based Auto Rickshaw Drivers Union launched its own app called Namma Yatri, which has gained popularity since its launch.