In a bid to offer an alternative to private ride-hailing giants like Ola, Uber, and Rapido, the Indian government has announced the launch of Sahkar Taxi, a cooperative-based taxi service. The initiative, revealed in Parliament on Wednesday, aims to empower drivers by ensuring they receive the full share of profits, unlike the existing aggregator model where corporations take a significant cut.
Sahkar Taxi will operate nationwide, registering two-wheeler taxis, auto-rickshaws, and four-wheeler taxis, making it a direct competitor to not only established players but also emerging services like BluSmart.
This cooperative framework follows the footsteps of Yatri Sathi, a similar government-backed service introduced by the Mamata Banerjee-led West Bengal administration. Initially launched in Kolkata, Yatri Sathi has successfully expanded to other cities such as Siliguri, Asansol, and Durgapur.
Another example of a driver-first model can be seen in Karnataka’s Namma Yatri, a privately developed taxi service app. Namma Yatri provides cabs, two-wheelers, and pooling services, allowing drivers to retain their full earnings without paying commissions to platform owners.
The entry of Sahkar Taxi into the market marks a significant shift in India’s ride-hailing sector. With the government actively promoting cooperative-based ownership, this move could disrupt the dominance of private cab aggregators and offer drivers a more sustainable, equitable alternative.
While specifics about the pricing structure, app development, and rollout timeline are yet to be revealed, the move signals the government’s commitment to fair wages and self-reliant business models in the mobility sector.
