The Karnataka government is gearing up to introduce its own ride-hailing app, slated for launch by February 2024, to directly compete with established players like Ola and Uber. Transport Minister Ramalinga Reddy confirmed the ongoing development, emphasizing that the app aims to address concerns raised by drivers and ensure a fair distribution of earnings.
Reddy stated that the government-initiated app, designed for auto and taxi drivers, is currently under development and is expected to be launched in early 2024. The government plans to hold discussions with stakeholders and transport unions to finalize the operational details of the new platform.
The move comes as Namma Yatri, previously supported by Bengaluru’s Auto Rickshaw Drivers Union (ARDU), has distanced itself from the union, and the government seeks to provide an alternative ride-hailing solution. Reddy highlighted the intent to collect only a nominal charge for app maintenance and operations, with the majority of earnings directed to the drivers.
While the government has not yet decided whether the app will be managed directly by the transport department or entrusted to a private firm through a tender, Reddy assured that the app would be non-profit-oriented, prioritizing fair treatment and compensation for drivers.
The proposed app aims to counter issues faced by drivers working with private aggregators, such as high commission rates. Reddy cited instances where drivers only received a fraction of the total fare paid by passengers, with the rest claimed by aggregators as commission and other charges.
In recent years, several state governments in India have explored the development of government-backed mobility apps to provide drivers with alternative platforms offering lower commission rates. In August 2022, Kerala launched the Kerala Savaari app, while GoaMiles, Yatri Sathi in West Bengal, and ASTC city cab service in Assam are other government initiatives.
The Karnataka government has approached the Karnataka e-Governance department for the app’s development, aiming to outsource the project through a tender process. The e-Governance department has proposed the creation of a dedicated agency to manage the app’s development, maintenance, and operations.
