Frustrated by Karnataka govt’s delay, transport federation to launch own app for auto, taxi and bus drivers

Bengaluru auto

Karnataka government's failure to fulfil its promise of launching a ride-hailing app as an alternative to aggregators like Ola, Uber, and Rapido has prompted the Federation of Karnataka State Private Transport Associations to develop its own app for taxi, auto, and bus drivers.

The federation, which represents 65 transport associations across Karnataka, including 22 in Bengaluru, is spearheading the initiative.

Federation president S Nataraj Sharma told Moneycontrol, “We’ve begun discussions with three to four private firms for a mobile app that safeguards the interests of both drivers and passengers. They’ve already given demos, and we’ll finalise a model soon. We’re planning to launch the app by October.”

Also, read: Karnataka govt to launch Ola-Uber-like app by February: Transport minister

In July 2023, Transport Minister Ramalinga Reddy had announced the government’s intent to create an app to counter private aggregators, with a promised launch by February 2024, which is yet to materialise.

“We waited for the government-initiated app, but they kept citing procedural delays — proposals, departmental approvals, tenders, consultants — and it is yet to see the light of day. It became clear they lacked the intent to deliver,” Sharma said.

“Even Union Home Minister Amit Shah announced a cooperative ride-hailing service called ‘Sahkar’. If the government can’t develop an app in months, it’s clearly not a priority,” he said.

He added that fare hikes after the ban on bike taxis worsened the situation. “After the ban, aggregator companies suddenly hiked fares, and the blame fell on auto drivers. In reality, it was the platforms that raised prices. Our drivers were penalised unfairly. We raised the issue with the transport minister and the department, but no action was taken. That’s when we decided the only solution, for both drivers and passengers, was to build our own app.”

Also, read: Bengaluru drivers turn to Telegram, WhatsApp and zero-commission apps to beat Ola-Uber duopoly

Buses next

Sharma said they will also integrate buses into the app, similar to platforms like RedBus and AbhiBus. “We’ll start with auto rickshaws and taxis, followed by buses. Ticketing will also be integrated into the app,” he said.

He explained that the goal is to ensure drivers receive payments directly from passengers. “We’re considering multiple models — one where drivers pay a fixed daily fee of Rs 10–30, and another where we charge a small commission, such as Rs 2 per kilometre or 5 percent of the fare per ride, which would be collected from customers. Unlike Ola and Uber, we won’t inflate fares during peak hours. Passengers will pay reasonable rates, and drivers will receive the full government-approved fare.”

Sharma acknowledged the failures of earlier union-backed apps. “Customers won’t face a shortage of vehicles, as our federation represents around 1.8 lakh drivers. All we’re looking for are good app developers, and some investors are also coming forward. We’ll promote the app through drivers, who will encourage passengers to book through our platform,” he added.

Also, read: After Namma Yatri, Bengaluru gets another union-backed auto rickshaw app

Not the first attempt

This isn’t the first time Bengaluru’s transport unions have attempted to counter Ola and Uber with their own platforms.

In November 2022, the Auto Rickshaw Drivers Union (ARDU), led by general secretary D. Rudramurthy, partnered with Juspay to launch Namma Yatri, a zero-commission app. ARDU played a key role in creating awareness and mobilising drivers.

Separately, the Karnataka Rajya Chalakara Parishath (Karnataka State Drivers’ Council), in partnership with Agnibhu Technologies, launched the Nagara app for auto and taxi drivers. Despite gaining popularity, it continues to struggle with a shortage of active drivers and app glitches.

In 2022, the Peace Auto Union teamed up with a mobility firm to launch the Rook app, which is no longer functional. In September 2023, ARDU, which had broken away from Namma Yatri, launched MetroMitra for last-mile metro connectivity in collaboration with Agnibhu Technologies, LatLong, and GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit). However, the service later shut down, and the team subsequently joined the Nagara app initiative. Some ARDU members later returned to Namma Yatri.

Also, read: Namma Yatri mends partnership with Bengaluru autorickshaw drivers union