Vietnamese conglomerate Vingroup's electric taxi service, Green SM, has received a licence from the Karnataka Transport Department to operate app-based cab services in the state.
The approval paves the way for the company to enter Bengaluru's competitive ride-hailing market, where platforms such as Rapido, Namma Yatri and Uber already have a presence.
Green SM's proposed entry could bring another round of competition to the city's app-based transport sector, particularly with the company planning to offer fares starting at around Rs 8 per kilometre.
The proposed rates could put pressure on existing operators, while giving commuters another option for booking rides.
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According to reports, the company plans to offer a minimum fare of around Rs 8 per km, which is lower than the per-kilometre rates currently cited for autos, cabs and bike taxis in Bengaluru.
Green SM To Offer Minimum Fare Of Rs 8 Per Km
Green SM's proposed pricing could become a key factor in its entry into Bengaluru's ride-hailing market.
Currently, auto fares in Bengaluru range from Rs 13 to Rs 15 per km, while cab fares are around Rs 20 to Rs 23 per km. Bike taxi fares through Rapido start at Rs 10 per km.
In comparison, Green SM plans to offer a minimum fare of around Rs 8 per km. This could make its electric taxi service a more affordable option for commuters and increase competition among app-based transport providers.
The proposed pricing could also put pressure on existing players to review their fares and compete for customers in the city.
Local Auto And Cab Drivers Raise Concerns
While the proposed lower fares could benefit commuters, Green SM's entry has raised concerns among local auto and cab drivers.
Many drivers have invested lakhs of rupees in purchasing their vehicles and depend on daily rides for their earnings. They fear that a new electric taxi service offering comparatively lower fares could affect their business and put additional pressure on their livelihoods.
Local drivers have opposed the proposed entry, raising concerns over the impact of the new service on their earnings. Taxi unions have also questioned the company's entry and called on the Karnataka government to review the licence, according to reports.
The concerns come as drivers face competition from established ride-hailing platforms as well as the possibility of another large fleet operator entering the market.
What Does Green SM's Karnataka Licence Mean?
The Karnataka Transport Department has issued Green SM an aggregator licence under the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016. According to Moneycontrol, the licence is valid until September 2031.
The approval allows the company to operate app-based cab services in the state, opening the door for its expansion into Bengaluru.
Green SM is the mobility arm of Vietnam-based Vingroup and operates an all-electric taxi fleet. The company entered the Indian market in June 2026 with its Green SM Limo service in Delhi-NCR and subsequently expanded to Hyderabad and in some parts of Chennai.
Its Bengaluru entry will add another player to the city's ride-hailing market, with its proposed pricing likely to be closely watched by commuters, existing operators and local drivers.
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