In the coastal state of Goa, where tourism drives a significant part of the local economy, a cab conundrum is unfolding as taxi operators clash with the state government over the proposed shift towards digital integration and regulation.

The Goa Tourism Department has formally urged local taxi drivers and operators to enrol in state-backed digital platforms such as the Goa Taxi App and GoaMiles, in an effort to promote a vision of “smart mobility, economic inclusion and a tourist-friendly environment”. The move is also intended to improve the transparency, accountability and pricing structure of the state’s transport services.

However, this initiative has been met with strong resistance from local taxi unions, who fear loss of livelihood and eventual replacement by private app-based transport aggregators such as Ola or Uber. The unions argue that such platforms favour centralised corporate control and threaten the traditional taxi ecosystem that supports thousands of Goan families.

On Monday, June 2, 2025, hundreds of taxi operators gathered outside the Transport Department office in Panaji, where they submitted written objections to the recently released draft guidelines for regulating app-based transport aggregators. The draft rules aim to streamline operations of app-based services, define accountability, ensure safety, and bring pricing under state regulation.

But the unions view this as a backdoor entry for big private players under the guise of regulation.

“This is nothing but an invitation for corporate aggregators to take over. We cannot compete with their discounts and incentives. It’s the end of small taxi operators in Goa,” said one protestor outside the Panaji office.

The Goa government, however, maintains that the new framework is designed to support local operators, not displace them.
In a statement, a Tourism Department official said,

“The goal is to integrate local stakeholders with digital platforms for efficiency, transparency, and convenience for both tourists and residents. The state-backed apps are created specifically to safeguard local interests.”

Despite such reassurances, mistrust lingers among the taxi unions, many of whom have historically operated as independent, unregulated service providers. Goa’s taxi services have often been criticised by tourists and citizens alike for overcharging, lack of transparency, refusal to use meters, and absence of grievance redressal mechanisms.

The GoaMiles app, launched in 2018, was seen as an attempt to address these issues. While some operators joined the platform, many refused citing concerns over commission cuts, lack of fare control, and technical complexity. The newer Goa Taxi App, directly backed by the state, is seen as a more robust attempt to digitalise and regulate the sector — but it faces similar resistance.

According to sources in the Transport Department, the draft guidelines are still open for public consultation, and stakeholders are being encouraged to provide constructive suggestions instead of outright rejection. The final policy will aim to balance technological progress with local employment protection, an official noted.

Meanwhile, taxi unions have warned of statewide protests and strikes if the government proceeds without addressing their core concerns.

“We are not against technology, but we want technology that protects our future, not one that replaces us,” said a senior member of the All Goa Taxi Owners Association.

Goa’s political leadership finds itself walking a tightrope — needing to attract and retain tourists with modern, reliable services while also protecting the livelihoods of local communities that form the backbone of the state’s informal economy.

The ongoing tension highlights the broader challenge India faces as it transitions from informal to formalised digital systems — how to regulate fairly without excluding the very people who’ve long powered essential services.

With the tourist season approaching, and millions expected to visit the state in the coming months, a resolution will be crucial. The government is expected to hold stakeholder meetings next week to address the feedback and finalise the draft rules.

Whether Goa can bridge the digital divide in its cab sector without political fallout remains to be seen.

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