The new service will focus on driver benefits like life, medical and accident insurances.
Some members of cab aggregators Ola and Uber, who have formed a drivers' union, plan to launch their services next month with the help of Kolkata-based technology startup which owns TYGR app.
"We plan to launch our cab services in the month of August with the help of Savetur Digital Private Limited, which owns TYGR app," Tanveer Pasha, former President of Uber, TaxiForSure And Ola Drivers And Owners Association told PTI in Bengaluru.
"We want to give a local name to the app. Something like 'Namma TYGR' or 'Namma Huli', are some of the names we are planning on," he said.
In the next three days, union members and Savetur officials are scheduled to meet former Chief Minister HD Kumaraswamy at his residence to finalise the deal, including the launching date and signing of documents, Mr Pasha said.
According to Mr Pasha, Savetur would run and manage the business according to a model drafted by drivers' union, which would satisfy both drivers and riders. The union will control and supervise Savetur through their company, which is in the process of registering its name as Huli Technologies.
It plans to expand to Mysuru, Mangaluru and Belagavi after the Bengaluru launch, Mr Pasha said.
The company will focus on driver benefits, including a 10 per cent commission charged for drivers, besides insurance and family benefits, among other incentives, he said.
The company plans to raise Rs 12 crore to run and sustain business at the initial stages and many investors have shown keen interest to pick stake in the company, Mr Pasha added.
The company aims to give Rs five lakh worth of life insurance, Rs five lakh as accident insurance and Rs two lakh medical insurance to the drivers annually.
Other plans include having three to four car categories that will show up on the "Namma TYGR" app (the name of which could be changed), namely a mini hatchback option at Rs 12.50 per km, a sports sedan option at Rs 14.5 per km, a utility vehicle option at Rs 18.50 per km and an outstation cab option as well.
There are also plans to set up five private patrol security cars to attend to drivers' problems like facing drunken riders traveling late at night.
"The private patrol car will help drivers during medical and legal emergencies," he added.
The idea for such a company originated when the drivers had gone on strike in February against cab aggregators, demanding better incentives and stopping attachment of new cabs which they said affects bookings.