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

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Karnataka government is likely to launch its ride-hailing app, similar to Ola and Uber, by February 2024.

"Our app for auto and taxi drivers will be launched by February 2024, and it is currently in the process," Transport Minister Ramalinga Reddy told Moneycontrol.

This development comes at a time when Namma Yatri, supported by Bengaluru's Auto Rickshaw Drivers Union (ARDU), initially promoted as an app for and by the driver community, has now severed ties with the Union.

Also, read: Auto Rickshaw Drivers Union in Bengaluru breaks up with Namma Yatri 

"At present, drivers receive only about 50 percent of total earnings, with the remainder taken by the aggregators in the name of commission and other charges. We plan to collect a nominal charge for the maintenance of the app and operations, with the rest of the earnings going to auto or taxi drivers," said Reddy.

He said the government has received many complaints from drivers about aggregators harassing them. "Our app will not be profit-oriented. It will be a no-profit, no-loss venture."

Reddy, however, stated that they are yet to decide whether it should be directly managed by the transport department or entrusted to a private firm through a tender.

"We will soon conduct stakeholder meetings with representatives of transport unions and department officials to chart out the plan, " he said.

He added that they have not finalised the name of the app, but that it will not bear the name of any political leaders.

In 2017, JD(S)'s cab drivers' association, in collaboration with a Kolkata-based startup, launched Namma TYGR app. However, service ceased operations after a few months. JD(S) leader HD Kumaraswamy had offered financial assistance of up to Rs 50 crore to launch the app.

In July 2023, Moneycontrol reported that the government is considering developing an app as a viable alternative to private aggregators like Uber and Ola.

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

Reddy highlighted an incident where a driver presented a customer's bill, stating 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 app to address these issues and ensure fair treatment and compensation for drivers," he said.

Govt-backed mobility apps

In August 2022, Kerala government launched the Kerala Savaari app. GoaMiles, supported by the Goa government, and Yatri Sathi, backed by the West Bengal government, and Assam State Transport Corporation's ASTC city cab service are government initiatives offering drivers rides with lower commission rates.

Also, read: Spotlight on zero-commission models after Namma Yatri, auto union break tie-up

C Sampath, general secretary of  Adarsh Auto Drivers' Union, told Moneycontrol, "Many auto drivers use three to four auto apps simultaneously. They accept rides from whichever app offers a higher rate or incentive. With over 60 percent of rides now happening through apps, we cannot outrightly oppose them even though they collect high commission fees from drivers. The solution to this issue is a government-backed app without any commission. All these private firms have vested interests and profit motives, making drivers the scapegoats in the end. We have been demanding that the Karnataka government come up with an app and our Union will support it"

e-Governance cell gives presentation to transport dept

In August 2023, transport department approached Karnataka e-Governance department to develop a mobile application following the minister's announcement and representations from drivers' unions.

Also, read:  Private transporters seek to regulate mobility aggregators; Karnataka minister says govt open to talks amid strike call

Dileesh Sasi, director, Electronic Delivery Citizen Services (EDCS) at e-Governance, told Moneycontrol, "We have given a presentation to the transport department officials. We are awaiting their response as they are the implementing authorities. We have already had a preliminary discussion on various models".

"We have suggested to the transport department that they conduct a stakeholder meeting and envision a plan. This will be a significant project, and we propose outsourcing it by engaging a firm through a tender process. The project involves not only app development but also its maintenance, managing a control room, and operating like a company. This necessitates a dedicated agency. Currently, we are assisting departments with immediate software requirements, but this project requires a separate entity for execution." said Sasi.

Union-backed MetroMitra

Meanwhile, ARDU recently launched MetroMitra for last-mile connectivity to and from Metro stations.

In September 2023, Rudramurthy-led ARDU launched Metro Mitra at Jayanagar Metro station in South Bengaluru, where commuters could scan a QR code to book an auto-rickshaw for last-mile connectivity.

Metro Mitra drivers currently operate at four stations — Jayanagar, RV Road, Vijayanagar,  and Hosahalli. There are 180 drivers, and the initiative is planning to introduce a WhatsApp chatbot. Unlike Namma Yatri, Metro Mitra requires no app, and passengers can simply scan a QR code to book.

Also, read: Bengaluru auto drivers unveil MetroMitra for last mile connectivity; ops to commence next week

MetroMitra is a collaborative initiative of auto-rickshaw drivers in partnership with Agnibhu Technologies, LatLong, and GiZ (Deutsche Gesellschaft für Internationale Zusammenarbeit). However, Namma Yatri clarified that it is not affiliated to Metro Mitra.