EV & CLIMATE
Vietnam's Green SM gets Karnataka approval for Bengaluru EV cab rollout by December
The Vingroup unit secured a state aggregator licence through September 2031, sparking pushback from traditional driver unions over pricing and fleet inspections.
Vietnamese conglomerate Vingroup's electric cab service, Green SM, has secured approval from the Karnataka Transport Department to launch app-based ride-hailing operations across Karnataka, setting up an on-road debut in Bengaluru by late November or early December 2026.
A senior Transport Department official confirmed that the company has been granted an aggregator licence under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016. The approval remains valid until September 2031, granting Green SM access to India's third major metro after its June 2026 entry into Delhi-NCR and its launch in Hyderabad earlier this month.
Fleet size and salaried driver model
Green SM is deploying an all-electric fleet of cyan-coloured VinFast electric SUVs across the city. Transport records show that 100 Green SM electric taxis have already been registered at the Indiranagar Regional Transport Office (RTO) in Bengaluru. Driver associations claim the company has brought roughly 5,000 electric cabs to local warehouses and is preparing to introduce an additional 10,000 vehicles.
Unlike dominant ride-hailing platforms such as Ola, Uber, and Rapido—which treat gig workers as independent contractors—Green SM operates a direct employment model. Drivers earn a fixed monthly salary ranging between Rs 35,000 and Rs 40,000, tied to operational and service targets including daily booking volumes and distance covered. The company also provides ESIC or private medical cover up to Rs 5 lakh alongside accidental insurance.
The aggregator is entering the market with pricing aimed below current transport modes. According to local taxi unions, Green SM plans to offer a minimum fare of around Rs 8 per km. This sits below existing auto-rickshaw fares in Bengaluru, which run between Rs 13 and Rs 15 per km, and standard cab fares of Rs 20 to Rs 23 per km.
| Ride Category / Aggregator | Rate per km | Driver Employment Structure |
|---|---|---|
| Green SM EV Cabs | ~Rs 8 (minimum) | Salaried (Rs 35,000 - Rs 40,000/month) |
| Bike Taxis | From Rs 10 | Independent contractor |
| Auto Rickshaws | Rs 13 - Rs 15 | Independent contractor |
| Standard App Cabs (Ola, Uber, Rapido) | Rs 20 - Rs 23 | Independent contractor |
Union protests and compliance allegations
The planned rollout has drawn pushback from city-based driver unions, including the Karnataka Rajya Chalakara Parishath and the Peace Auto Union. Representatives organized protests on Wednesday, urging the state government to withdraw Green SM's operating licence.
Driver groups argue that injecting thousands of fleet-owned EV cabs into the city will depress driver earnings and make it difficult for existing vehicle owners to service their bank EMIs.
Unions have also alleged that the Transport Department issued the licence without enforcing compliance standards mandated by a 2016 Karnataka High Court order. K. Somashekar, president of the Karnataka Rajya Chalakara Parishath, questioned whether the vehicles underwent mandatory physical inspections.
"All cabs must be equipped with fare meters, display boards and prescribed GPS devices," Somashekar said, arguing that any licence issued without complying with these specifications should be cancelled. Driver groups further alleged that requirements regarding valid driving licences and police verification certificates were overlooked.
Government review and official scrutiny
Following a formal complaint submitted by driver associations, Karnataka Transport Minister Bhairathi Suresh held a meeting with union representatives. The minister stated he was unaware that the aggregator licence had been granted and contacted Transport Department Commissioner Selvamani to demand an immediate review of the approval files.
Suresh instructed department officials to submit all relevant clearance documents to determine whether statutory procedures were followed during the licensing process. The minister also noted that existing operators, including Ola and Uber, face regulatory enforcement if found violating state transport rules.
Why it matters for Bengaluru's mobility market
Green SM's arrival represents the first funded EV-first operator to launch in Bengaluru with a fully asset-heavy, salaried-driver model. If cleared to operate at full scale, Vingroup's structure challenges the commission-based gig model established by incumbents Ola and Uber, while introducing direct price competition against auto-rickshaws and bike taxis.
For operators and investors, the unfolding regulatory debate highlights the friction facing international fleet operators attempting to enter Indian metros, where driver unions hold significant leverage over local transport policy.