Karnataka Transport Minister Ramalinga Reddy.
Credit: DH File Photo
Bengaluru: The state government is preparing to launch its own ride-hailing app in February 2024, but it's not clear who will run it or how much it will cost.
What's clear is that the app will work on a no-profit, no-loss model, according to Transport Minister Ramalinga Reddy.
"We are making preparations for the launch, but it's still early days," he told DH. "Discussions on funding and maintenance are still ongoing. We will make an announcement in January."
Reddy, who became the transport minister in the Congress government in May, is keen that the government launch a mobile phone app that offers cab and autorickshaw rides.
Court cases
The Transport Department is fighting multiple court cases against ride-hailing behemoths Ola, Uber and Rapido.
Some of these cases have challenged the Karnataka On-Demand Transportation Technology Aggregator Rules, 2016, which laid down the guidelines for the functioning of app-based ride-hailing firms.
A second case is against the department's diktat that apps cannot offer autorickshaw rides. Then there is the case against the ban on bike taxis.
The High Court of Karnataka has restrained the department from taking any coercive action against the firms.
Auto and cab drivers in Bengaluru have been upset with the firms, saying they charge huge commissions for facilitating the rides. Reddy said a bill he checked showed that the aggregator had taken Rs 350 out of the total fare of Rs 800.
In September, when private transport vehicles went on a strike, one of their 32 demands was to restrain Uber and Ola from charging "illegal" cab fares. The firms are also accused of disobeying a court order on auto fares.
Reddy had announced that the government would launch its own app to solve the problem of "unfair" commissions.
Don't keep us out of Namma Yatri management: ARDU
The Auto Rickshaw Drivers' Union (ARDU) on Thursday slammed Namma Yatri for trying to keep it out of the app's management.
Touted as the auto drivers' own app, Namma Yatri was launched in November 2022 and has a 25% market share in Bengaluru. It has tried to distance itself from the ARDU, which claims to represent 32,000 drivers and was part of the app from the start.
Namma Yatri, owned by Juspay Technologies, said it "collaborates with over one lakh drivers, the majority of whom are not affiliated with any union".
The ARDU called for running the app as a digital cooperative.
"Namma Yatri is currently purely corporate-led and, we as its co-creators, have no specific role in its ongoing and future management," it said and asked for including inception stakeholders in the management.