CHENNAI: The Chennai Unified Metropolitan Transport Authority (CUMTA) is planning to set up a Special Purpose Vehicle (SPV) to run its proposed ride-hailing platform for autos and cabs, with the authority also exploring a model under which autorickshaw drivers could become stakeholders in the entity.
The SPV, which is still at the planning stage, is being considered as the structure through which the platform and related driver welfare measures can be operated.
The development comes as CUMTA begins the groundwork for the app announced by Housing and Urban Development Minister B Rajkumar in the Assembly in August. A GO authorising CUMTA to undertake the project is expected in the coming weeks.
“The tender document for selecting a technical partner has already been prepared and submitted to the Tamil Nadu Infrastructure Development Board (TNIDB) for vetting, as the project is proposed under a public-private partnership model,” said an official from the authority. CUMTA is targeting June-July 2027 for launching the platform.
The proposed SPV could make the initiative more than another government-backed alternative to existing aggregators such as Ola and Uber. CUMTA plans to retain a small portion of the per-ride charge collected through the platform, with the money potentially being used to fund driver welfare measures, including health insurance. It is also exploring whether autorickshaw drivers using the platform can become shareholders in the SPV, giving them a formal stake in the system.
Officials said the broader idea is to gradually move autorickshaw drivers, who largely operate in an unorganised environment, towards a semi-organised structure.
The proposal combines elements of models of Kerala and the Union Government's initiative. Kerala’s Savaari, launched as a government-backed auto-taxi platform, uses a service charge collected from passengers, with a portion of the proceeds earmarked for project implementation, incentives and promotional offers for drivers and passengers.
At the national level, Bharat Taxi, operated by Sahakar Taxi Cooperative Limited, has taken the driver-ownership route, with drivers becoming members and stakeholders in the cooperative. Unlike this, CUMTA is not proposing a driver-owned cooperative. At the same time, the proposed SPV would allow CUMTA to retain a portion of the platform’s per-ride revenue for possible welfare measures, while the proposed shareholding model could give drivers a stake in the entity running the platform.
The platform will also use a digital meter. Officials said that this would also make future fare revisions easier. When fares are revised, the tariff can be changed centrally on the server and reflected across the digital meters. A committee involving the Transport Commissionerate officials has now been constituted to examine how the fare revision should be carried out.
The app and the fare revision are part of a longer-pending demand from autorickshaw drivers. Drivers have sought a minimum fare of Rs. 60 for the first 1.5 km, Rs. 30 for every subsequent kilometre, a waiting charge of Re. 1 per minute and a night-time fare of 1.5 times the normal tariff.
2022: Auto drivers demand with fare revision, government-backed app
October 2023: State Transport Dept explores auto ride-hailing app called TATO
March 2024: Unions reject private ownership, suggest using funds from welfare board to fund software
May-July 2024: CUMTA’s Common Mobility App to eventually integrate private aggregators such as Ola, Uber
February 2025: CUMTA moves towards auto-booking app, begins survey among commuters, auto drivers for reasonable fare
August 2026: Minister announces CUMTA auto/cab app integrated with digital meters
September 2026: SPV model takes shap;, launch around June-July 2027 while long-pending fare revision measures still under way