Kerala govt escalates online taxi row as drivers clash on streets

Thiruvananthapuram: The state government has intensified the ongoing dispute over online taxi services in Kerala, even as clashes between drivers break out on the streets. The controversy flared after Transport Minister K B Ganesh Kumar declared that online taxis do not have official approval, prompting tensions that began in Munnar to spread to other parts of the state.

The Motor Vehicles Department (MVD) has clarified that online taxis are operating without the permission of the State Transport Authority (STA), further deepening the crisis.

State yet to update policy

In 2020, the central government introduced the Motor Vehicles Aggregator Policy to regulate online taxi services, directing states to issue their own guidelines and licences accordingly. Kerala framed its state-level policy in April 2024. However, although the central government revised its policy in July 2025, the state is yet to update its own version.

Officials from the Transport Department have complained that no operators have applied for a licence, but without updating the state policy, licences cannot legally be issued.

Licence meant to regulate fares and safety

Taxi and auto-rickshaw fares are set by the state government, and the same system was intended to regulate the pricing of online taxis through the introduction of a licensing framework. The policy also includes conditions to ensure vehicle insurance, fitness, qualified drivers, and passenger safety—especially for women.

Critics allege that the earlier delay of nearly four years in introducing the state policy was aimed at favouring two existing private online taxi companies.

Even Kerala Savari lacks a licence

The state-run ride-hailing platform Kerala Savari, launched by the government in 2022, has also not applied for a licence. The service, which was suspended shortly after its launch, resumed operations last week. The government has reportedly decided to grant Kerala Savari special exemptions from the licensing requirement.

Authorities have warned that obstructing online taxis is unlawful. Vehicles with valid permits are allowed to pick up passengers from any location, as both traditional and online taxis operate under the same permit and tax regulations.

However, traditional taxi and auto-rickshaw drivers argue that their livelihoods are being threatened by the expansion of unlicensed online cab services.