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Bengaluru taxi unions resist Vietnamese e-taxi firm's Karnataka expansion

Vietnamese conglomerate Vingroup's electric cab service Green SM has won regulatory approval to operate in Karnataka, prompting strong opposition from local taxi unions concerned about market disruption and driver livelihoods.

LSN India · 11 November 2026

Bengaluru taxi unions resist Vietnamese e-taxi firm's Karnataka expansion

Green SM, the app-based electric taxi service backed by Vietnam's Vingroup, has secured clearance from the Karnataka Transport Department to begin operations across the state, marking the entry of a major foreign aggregator into India's competitive ride-hailing market. The approval has triggered resistance from Bengaluru's organized taxi unions, which view the venture as a potential threat to existing operators and traditional cab drivers. Local unions have raised concerns about unfair competition, predatory pricing practices, and the potential erosion of employment opportunities for thousands of drivers already operating in the city. The opposition reflects broader tensions within India's ride-hailing sector, where established players and traditional taxi operators have repeatedly clashed over regulatory frameworks and market access. Bengaluru, India's technology hub and a major mobility market, has become a flashpoint for such disputes as various aggregators seek to expand their services. The Karnataka Transport Department's approval suggests the state believes the new entrant meets operational and safety standards, though it remains unclear whether additional conditions have been imposed. Industry observers note that Green SM's electric vehicle focus aligns with India's push toward cleaner transportation, though this sustainability angle has done little to soften unions' resistance to the entry.