Can Sahkar taxi service in India dethrone Ola and Uber?

Sahkar Taxi Service India: The Indian government is indeed planning to launch a new app-based taxi service called ‘Sahkar,’ also referred to as ‘Bharat Cooperative Taxi’ or ‘National Taxi,’ based on a cooperative model. This initiative is being spearheaded by the Union Home Minister and Minister of Cooperation, Amit Shah.

“…Based on the cooperative model, National Taxi will be started in which the taxi drivers will not be just related to it but will be the owners of Bharat Cooperative Taxi. The profit will directly go to the bank accounts of taxi drivers,” said Amit Shah.

Key aspects of the ‘Sahkar’ taxi service:

Cooperative Ownership: Unlike traditional ride-hailing platforms like Ola and Uber where drivers are service providers, in Sahkar, taxi drivers will not only be members but also act as owners of the service.

Direct Profit Sharing: A core principle of Sahkar is that the profits generated will be directly credited to the bank accounts of the taxi drivers, aiming to ensure fair income and financial benefits for them. This is intended to eliminate significant cuts taken by private aggregators.

“Sahkar se Samriddhi” (Prosperity through Cooperation) Mission: This initiative aligns with the government’s broader mission to empower the cooperative sector and promote inclusive growth.

Vehicle Inclusion: The service is expected to register a variety of vehicles, including two-wheelers, auto-rickshaws, and four-wheeler taxis.

Government Backing: The Ministry of Cooperation has been actively working on this project.

Launch Timeline & Rollout: While a specific national rollout date hasn’t been provided, the service is expected to be piloted in select urban centers (initially Delhi, Gujarat, and Maharashtra are mentioned) before a national expansion. The operational launch is expected within the next six months (from mid-June 2025).

This move comes amid increasing scrutiny of private ride-hailing giants over their pricing mechanisms and aims to provide a driver-centric alternative that could potentially transform the gig economy in India.

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