Private transport associations urge Karnataka government to cap Vietnamese electric taxi aggregator’s fleet

The Federation of Karnataka State Private Transport Associations (FKSPTA) sent a formal letter to Chief Minister D.K. Shivakumar demanding immediate regulatory action against Green SM, a Vietnamese company that operates a large fleet of electric taxis in Bengaluru and other cities. The federation argues that the rapid expansion of Green SM's fleet, which now numbers in the thousands, has led to a sharp decline in earnings for traditional auto‑rickshaw and taxi drivers who rely on daily fares for their livelihood. The letter cites specific instances where drivers were forced to wait longer for passengers due to the oversupply of electric vehicles.

FKSPTA officials contend that Green SM enjoys advantages such as lower operating costs, subsidies on electric charging infrastructure and a pricing model that undercuts conventional services. While the state government has encouraged the adoption of electric mobility to reduce pollution, the federation warns that unchecked growth could destabilize the existing transport ecosystem. The association has proposed a cap on the number of electric taxis that any single operator may deploy, along with a requirement for new entrants to obtain a special permit that considers the impact on local employment.

The issue arrives at a time when Karnataka is grappling with the need to balance environmental goals with the economic realities of its large informal transport sector. Policymakers are expected to review the petition alongside data on traffic congestion, emissions and driver earnings. The outcome could set a precedent for how Indian states regulate foreign‑owned mobility platforms that operate on a large scale.