Indian Govt Enters Ride-Hailing Space with ‘Sahkar Taxi’; What It Means for You

The Indian government is set to launch ‘Sahkar Taxi’, a cooperative taxi service designed to benefit drivers directly by eliminating profit-sharing with large corporations like Ola and Uber.
Indian Govt Enters Ride-Hailing Space with ‘Sahkar Taxi’; What It Means for You
Sahkar TaxiThe Bridge Chronicle
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The Indian government has announced plans to launch a new cooperative taxi service called ‘Sahkar Taxi’, aimed at providing an alternative to popular ride-hailing platforms like Ola and Uber. Union Home and Cooperation Minister Amit Shah revealed this initiative during a Lok Sabha session, emphasizing that the service will be structured to ensure that profits go directly to the drivers rather than large corporations. This cooperative model aligns with Prime Minister Narendra Modi's vision of "Sahkar se Samriddhi" (prosperity through cooperation).

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The Sahkar Taxi service will register various types of vehicles, including two-wheeler taxis, auto-rickshaws, and four-wheeler cabs, across the country. By eliminating intermediaries, the initiative aims to enhance financial security for drivers, allowing them to retain their full earnings. Shah highlighted that this model is designed to benefit drivers directly, contrasting with existing private ride-hailing services that take a cut from drivers' earnings.

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This announcement comes amid increasing scrutiny of Ola and Uber over pricing practices, with allegations of discriminatory pricing based on the device used for booking rides. The government’s move is seen as a response to concerns raised by driver unions regarding fair compensation and working conditions in the gig economy.

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The Sahkar Taxi initiative is expected to launch in the coming months, with preparations already underway. It follows a similar cooperative model previously introduced in West Bengal with the Yatri Sathi service. The government also plans to establish a cooperative insurance company to provide additional support for drivers within this new framework.

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