Bengaluru’s competitive cab transportation market is gearing up for another big blow as Vietnam-based electric taxi operator Green SM gets nod from Karnataka Transport Department to launch its app-based taxi services in the state.
The international electric mobility company entry will bring a new competitor into Bengaluru’s growing ride-hailing industry (Uber, Rapido and Namma Yatri are already present) but the proposed entry has already sparked opposition from several driver organisations in Karnataka that fear arrival of another large cab operator would dent earnings and livelihood of local taxi drivers.
Green SM which operates an electric taxi service under Vietnam business conglomerate Vingroup has reportedly been granted licence under Karnataka On-Demand Transportation Technology Aggregators Rules, 2016 till September 2031 (app-based transportation services can be operated only during this period subject to regulatory requirements). It is an important step in Green SM expansion plans in India as Bengaluru continues to see demand for app based mobility and electric transportation solutions.
But the company has not been welcomed by all sections of local transportation industry. The Karnataka State Drivers’ Council and Peace Auto Union (among others) have reportedly objected strongly to the permission given to Green SM saying that another major company coming in would only increase competition in an already tough market where independent taxi drivers are facing rising operational costs and uncertain daily earnings.
Local drivers fear that Green SM which runs its own fleet of electric vehicles and employs drivers will put more pressure on existing taxi operators as well because unlike ride hailing aggregators who mostly connect independent drivers with passengers digitally, Green SM owns its fleet of electric vehicles. Driver associations say that a company with huge finances and control over its vehicles can get a competitive advantage over individual drivers who rely on their own cars and income from daily trips; competition will eventually lead to lower earnings, fewer trips and more financial pressure on local drivers.
The driver organisations have also questioned how the Karnataka Transport Department gave the licence. They want the state government to review the approval and cancel the one given to Green SM; they want strict implementation of the aggregator regulations as well (all companies in Karnataka must follow the same rules and conditions). “If another major player is introduced without addressing the concerns of existing drivers then there will be more uncertainty in transportation,” said a senior organiser from one of the organisations.
Bengaluru has thousands of drivers who are dependent on app-based taxi services for their livelihood. Drivers have fuel and vehicle maintenance costs, loan repayments, commissions, platform charges etc. to deal with apart from fluctuations in passenger demand. A new international operator entering the market has therefore raised questions whether competition will benefit passengers or drivers more?
Green SM is the transportation and mobility services arm of Vietnam’s largest business conglomerate Vingroup. It focuses on electric mobility and has an EV fleet (all electric vehicles). The business model is app-based transportation services through company owned vehicles and professionally trained drivers.
Green SM started its Indian expansion in June 2026 with its Green SM Limo service in Delhi-National Capital Region. Soon after launch, it expanded to other markets like Hyderabad and Bengaluru is emerging as another important potential market for expansion now that the city is increasingly interested in EVs, technology driven transport and sustainable mobility solutions.
Green SM has reportedly been using the VinFast Limo Green for its Indian operations a seven-seater electric multi-purpose vehicle designed to provide comfortable passenger transportation. Its larger seating capacity may make it more suited for families, airport transfers and group travel.
The company has said that its services are available at an approximate starting rate of Rs 8 per km (although actual fares will vary based on service, route and charges applicable). If this pricing is introduced in Bengaluru it could be an interesting alternative for passengers who use app cab services regularly; competitive pricing might also force existing operators to re-think their fares and services.
Safety and technology are other aspects Green SM is pitching as part of its service model. It says its operations have trained drivers, cameras inside and outside vehicles, AI-based technology and emergency assistance buttons to increase passenger safety, monitor vehicle operation and provide extra support in emergencies.
These could be an important selling point in Bengaluru where passenger safety, driver behaviour and service reliability are major concerns among app based taxi users. The company’s electric fleet may also appeal to environmentally conscious commuters looking for alternatives to petrol and diesel powered taxis.
The launch of Green SM in Bengaluru is an important question for the city’s taxi industry on one hand passengers could have more options, lower fares, electric vehicles and technology enabled safety features; on the other existing drivers fear they will lose income and face stronger competition from a company with its own dedicated fleet. How Karnataka government responds to the objections raised by driver organisations might decide how the company expands.
Whether it reconsiders the licence or lets Green SM start operations under the existing regulatory regime. As Bengaluru prepares for another possible entrant into ride hailing market the debate between expanding electric mobility and protecting livelihoods of local drivers is likely to become more important.
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