Andhra Pradesh Chief Minister Chandrababu Naidu recently announced plans to launch a new Autorickshaw booking app, aiming to onboard two lakh drivers across the state. The app is said to be designed on par with Uber and Ola.
While the idea sounds ambitious, many believe it’s unnecessary. No other state in India currently operates a government-run auto booking platform. The app model is still unclear, raising questions about how it will function.
Populist governments usually avoid charging commissions or subscriptions. But with existing government websites already struggling with poor infrastructure and slow response, running a large-scale app effectively could be challenging.
If auto drivers demand fares higher than the app’s listed prices, the government may face backlash. On the other hand, if customers refuse to pay above the app rate, it could anger drivers. Managing both sides will be tricky.
Private apps like Uber and Ola initially worked on a commission model, charging drivers 10-15% per ride. But due to protests and union pressure, they shifted to a daily subscription model, allowing drivers to collect fares directly.
Today, even Uber and Ola don’t display fixed fares they show recommended prices, giving drivers flexibility to charge slightly higher. If these private companies had to adjust under pressure, a government-run app could face even more resistance.
Uber and Ola remain popular because of their user-friendly experience and large driver network. A government app may struggle to match their efficiency and convenience.
Instead of competing with private operators, the government could focus on rural and semi-rural areas where such services are limited. Even then, connectivity and demand issues could arise.
The government’s role should be to support innovation where it’s lacking, not to duplicate systems that already work. With private options like Uber and Ola serving urban riders well, a government-run app seems redundant.
