Karnataka may drop plan to have state-run aggregator app for cabs and autorickshaws
A government-run aggregator app has been a demand of several autorickshaw and cab drivers in Karnataka who have complained of ‘high commissions’ that big aggregators would charge.
3 min read
Cab rides through aggregators.(Representational Image)Just as the central government has announced a plan to introduce an app called Sahkar Taxi to compete with Ola and Uber, the Karnataka government is likely to abandon its decision to develop an aggregator app for autorickshaw and cab services.
Union Home Minister Amit Shah last week announced in Parliament that the Centre would launch a cooperative-based taxi service across the country to offer an alternative to popular ride-hailing platforms.
Officials in the Karnataka transport department told indianexpress.com that the state government did not currently have the bandwidth to develop the app. “The development of a state-owned aggregator app requires significant technical expertise, infrastructure and sustained operational support. At present, the government does not have the necessary resources to undertake such a complex project. Moreover, the central government has announced plans to come up with its own app. It will benefit drivers of Karnataka too,” a senior official from the department said.
Transport Minister Ramalinga Reddy, however, told indanexpress.com that developing a state-run app was not completely off the table. “The problem is when the state government is developing its own app for cab and auto services, the government itself becomes an aggregator and a regulator. This will lead to conflict of interest and legal hurdles. We will consider other options and see what best can be done,” he said.
A government-run aggregator app has been a demand of several autorickshaw and cab drivers who have often complained of “high commissions” that big aggregators would charge, leaving them with insufficient earnings. Following repeated requests, Reddy in July 2023 said an aggregator app would be developed in collaboration with the e-governance department.
In fact, Reddy had also announced that it would be launched by early 2024. However, several aggregator apps, including Rapido and Uber have over time transitioned to a zero-commission model, aiming to hand over the entire earnings of the ride to the driver. The apps still charge platform or subscription fees from the drivers.
In January 2024, the transport department constituted a 12-member, high-power committee to submit a detailed report on the framework to develop a government-run aggregator app in the public-private partnership mode. The department and Directorate of Electronic Delivery of Citizen Services later called for expressions of interest from companies interested in developing the app.
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