Key Points:
- Union Home Minister Amit Shah announces Sahkar Taxi, a cooperative-based ride-hailing service aimed at eliminating middlemen and ensuring direct profits for drivers.
- The initiative allows registration of two-wheelers, taxis, rickshaws, and four-wheelers through cooperative societies.
- Sahkar Taxi aligns with PM Modi’s vision of ‘Sahkar Se Samriddhi’ (Prosperity through Cooperation) and promises transparent pricing for passengers.
- The move comes amid growing scrutiny of Ola and Uber over allegations of unfair pricing practices.
New Delhi: In a bold move to disrupt the dominance of ride-hailing giants Ola and Uber, Union Home Minister Amit Shah on Thursday announced the launch of Sahkar Taxi, a cooperative-based transport service designed to benefit drivers directly. The announcement was made during a session in the Lok Sabha, where Shah emphasized that the initiative aligns with Prime Minister Narendra Modi’s vision of ‘Sahkar Se Samriddhi’ (Prosperity through Cooperation).
How Sahkar Taxi Works
Unlike private platforms, Sahkar Taxi will operate through cooperative societies, enabling drivers to register their vehicles whether two-wheelers, auto-rickshaws, or four-wheelers without involving intermediaries. This ensures that drivers retain their full earnings without commission cuts.
“This is not just a slogan. The Ministry of Cooperation has worked tirelessly for three and a half years to bring this initiative to life,” Shah stated. He added that the service will be rolled out nationwide in the coming months, providing both drivers and passengers with a fairer alternative.
Benefits for Drivers and Passengers
The Sahkar Taxi service aims to address longstanding grievances from drivers about high commission fees charged by private platforms like Ola and Uber. By eliminating these fees, drivers will enjoy greater financial stability and independence.
For passengers, the government-backed service promises affordable fares and a transparent pricing system, free from discriminatory practices. Cooperative societies managing the service will ensure competitive pricing while maintaining high service quality.
Context: Ola and Uber Under Scrutiny
The announcement comes at a time when Ola and Uber are facing backlash over alleged unfair pricing practices. Reports surfaced suggesting that ride fares vary based on whether users book via an iPhone or Android device. The Central Consumer Protection Authority (CCPA) recently issued notices to both companies, questioning their pricing strategies.
While both companies denied platform-based price discrimination—claiming uniform pricing structures—the controversy has highlighted broader concerns about consumer rights in India’s gig economy.
A Broader Vision for Cooperation
Sahkar Taxi is part of the government’s larger push toward cooperative growth under PM Modi’s vision of ‘Sahkar Se Samriddhi.’ Shah also revealed plans to establish a cooperative insurance company to provide financial protection for those in the cooperative sector.
“In a short time, this insurance company will become one of the largest in the private sector,” Shah noted.
Similar Models Across India
The concept of cooperative-based transport services is not entirely new in India. States like West Bengal and Kerala have already experimented with similar models:
- Yatri Sathi: Launched by the West Bengal government, this app-based service offers affordable rides while ensuring direct earnings for drivers. Initially introduced in Kolkata, it has expanded to cities like Siliguri and Asansol.
- Kerala Savaari: Introduced in 2022 as India’s first government-owned taxi service, it faced challenges but is now being revamped with better fares and technology.
These models have served as inspiration for Sahkar Taxi, which aims to scale such initiatives nationwide.
What’s Next?
The rollout of Sahkar Taxi is expected in the coming months, with cooperative societies across India gearing up for registrations. Experts believe this initiative could significantly disrupt the ride-hailing market by offering an equitable alternative that benefits both drivers and passengers.
With Sahkar Taxi, the government is not just challenging corporate monopolies but also empowering drivers through financial independence and transparency. As India awaits its launch, this initiative could redefine ride-hailing services by putting people not profits at its core.
