Bengaluru taxi unions strike to block VinFast’s ₹8/km EV cabs

VinFast’s Green SM has won the paperwork to roll out 5,000 electric cabs in Bengaluru by December, but the city’s taxi unions are digging in for a fight. Drivers say the ₹8/km fare is predatory, and they want the state to block the launch until every vehicle passes inspection, sports a meter and carries mandatory GPS.

Tarun Mottlia

Editor, Lazyfounder

Published Nov 12, 20262 min read

Bengaluru taxi unions strike to block VinFast’s ₹8/km EV cabs — Image: Mint (Technology) via source

30 SEC SUMMARY

VinFast’s Green SM will roll out electric cabs in Bengaluru by December after winning a state transport licence.
Local taxi unions are blocking the launch, calling the ₹8/km fare predatory and the 5,000 new EVs uninspected.
Unlike Uber and Ola, Green SM pays drivers fixed salaries plus health and accident insurance.
Unions demand the Karnataka government revoke the permit until meters, GPS and safety checks are proven.

KEY HIGHLIGHTS

Green SM wins Karnataka transport licence, plans Bengaluru debut in November-December.
₹8/km minimum fare undercuts local autos (₹13-₹15) and cabs (₹20-₹23).
Karnataka Rajya Chalakara Parishath and Peace Auto Union stage protests, demand licence withdrawal.
VinFast deploys 5,000 electric cabs, pays drivers ₹35,000-₹40,000 monthly with health coverage.

Bengaluru launch planned for November-December

VinFast’s ride-hailing arm, Green SM, is bringing its electric cabs to Bengaluru after launching in Delhi-NCR and Hyderabad. The Karnataka Transport Department has granted the company a licence, and Green SM aims to start picking up passengers in late November or early December.

Unions call ₹8/km fare predatory, demand licence revocation

Taxi unions in Bengaluru are on the streets to block Green SM’s arrival. They say the service’s ₹8/km fare—well below the city’s ₹13-₹15 auto and ₹20-₹23 cab rates—will drive down earnings for thousands of drivers.

Karnataka Rajya Chalakara Parishath president K Somashekar charges that none of the 5,000 electric cabs VinFast has moved into the city have been inspected, metered or fitted with the GPS units required by state rules. He has asked the government to revoke the licence until every vehicle complies.

Salaried drivers and 5,000 EVs reshape competition

Unlike Uber, Ola and Rapido, Green SM runs a payroll, not a gig platform. Drivers earn ₹35,000 to ₹40,000 a month plus medical and accidental insurance.

That shift hands operating risk to VinFast and gives drivers steady pay, but it also lets the company flood the market with 5,000 EVs before the first union protest broke out.

Key takeaways

Bengaluru’s taxi drivers now face a second front: after years of gig-work battles with Uber and Ola, they must confront a salaried, low-cost EV fleet that could reset local pricing.
Fixed driver pay and employer-provided benefits shift risk from workers to VinFast, pressuring incumbents to rethink contractor models.
The dispute pushes Karnataka regulators to clarify whether app-based EV fleets must follow the same meter, GPS and inspection rules as legacy taxi operators.

Sources

Mint (Technology) · 2026-11-12
Vinfast’s Green SM runs into trouble with taxi unions in Bengaluru - Why is the app-based EV cab is facing opposition?

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