Karnataka govt plans to launch Ola, Uber-like app for cabs and auto rickshaws

Karnataka Transport Minister Ramalinga Reddy

The Karnataka government has decided to launch its own ride-hailing app, aiming to provide a platform similar to popular services like Uber and Ola to address the concerns and grievances of taxi and auto-rickshaw drivers.

Following a grievance meeting with representatives from auto, taxi, and bus unions on July 31, transport minister Ramalinga Reddy told Moneycontrol that the government is seriously considering developing an app that will serve as a viable alternative to private aggregators like Uber and Ola.

Reddy said he received many complaints from drivers, who are facing exploitation by app-based aggregators.

He highlighted an incident where a driver presented a customer's bill, indicating that the passenger had paid Rs 800, but the driver only received Rs 450, with the remaining amount going to the company.

"Ola and Uber do not own any vehicles; their investment lies solely in their app and software. The government is committed to creating its own app to address these issues and ensure fair treatment and compensation for drivers," he said.

In 2022, the Kerala government launched the 'Kerala Savari' app as an alternative to Ola and Uber, which however failed to gain popularity. Bengaluru's Auto Rickshaw Drivers' Union (ARDU) rolled out 'Namma Yatri' app in November 2022, developed by Juspay Technologies and supported by the Beckn Foundation, which garnered a positive response from users.

Reddy said discussions are underway to establish an Indira canteen at Kempegowda International Airport, offering affordable food options for drivers.

He said the transport department will hold a discussion with the Bangalore Metro Rail Corporation Limited (BMRCL) to set up auto stands at metro stations, providing enhanced convenience for drivers. "We will also conduct a discussion with the police to designate specific auto stands across the city."

Addressing drivers' demand to ban bike taxis, Reddy stated that the matter is currently pending in the high court. He also promised to look into their other demands, including insurance coverage for drivers, housing facilities, providing educational assistance for drivers' children, observing a drivers' day and honouring exemplary drivers, implementing uniform cab fare to the airport, reducing road tax for buses, and facilitating online tourist permits.