Karnataka To Launch Ride-Hailing App By February 2024 To Take On Ola, Uber

The Karnataka government is likely to launch a 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,” the state transport minister Ramalinga Reddy told Moneycontrol on Thursday (November 14).

The transport minister added that the drivers working for vehicle aggregators such as Ola and Uber receive only about 50% of total earnings, with the rest going to aggregators in the form 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,” Reddy added.

Reddy said the state government has received many complaints from drivers about aggregators harassing them. The new app will not be focussed on profit, he was cited as saying. 

The Karnataka government aims to hold a meeting with stakeholders and transport unions to decide the nitty-gritty, including if the ride-hailing app should be managed by the transport department or a private firm.

“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,” Reddy told the publication. 

The development comes as 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.

Meanwhile, the ARDU has launched Metro Mitra for last-mile connectivity to and from metro stations in Bengaluru. Commuters can 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.

However, Namma Yatri clarified that it is not affiliated with Metro Mitra.

This is not the first time that a state government has launched an app for cab and auto-rickshaw drivers. 

In August 2022, the 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 other government initiatives offering drivers rides with lower commission rates.

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