Govt to launch ‘Sahkar Taxi’ to rival Ola, Uber; Promises fair earnings for drivers

The Indian government is set to introduce ‘Sahkar Taxi’, a cooperative-based ride-hailing service aimed at providing direct financial benefits to drivers. Announced by Union Home Minister Amit Shah in Parliament, the initiative will allow cooperative societies to register two-wheelers, taxis, rickshaws, and four-wheelers without the involvement of intermediaries, ensuring full earnings for drivers. Shah stated that the initiative aligns with Prime Minister Narendra Modi’s ‘Sahkar Se Samriddhi’ (Prosperity through Cooperation) vision and has been in development for over three years under the Ministry of Cooperation.

“This is not just a slogan. The Ministry of Cooperation has worked relentlessly for three and a half years to implement this on the ground. In a few months, a major cooperative taxi service will be launched, ensuring direct profit flow to the drivers,” Shah said in Lok Sabha. The project is designed to offer an alternative to existing ride-hailing platforms like Ola, Uber, Rapido, and BluSmart, with the government aiming to provide a more driver-centric model for urban and rural transportation.

The announcement comes amid ongoing scrutiny of private ride-hailing companies after reports surfaced alleging pricing discrimination based on the phone models used for bookings. The Central Consumer Protection Authority (CCPA) recently issued notices to Ola and Uber following claims that fares varied depending on whether a user booked via an iPhone or Android device. In response, Ola denied any such practices, stating, “We have a uniform pricing structure for all our customers and do not differentiate based on the operating system of the user’s cellphone for identical rides.” Uber also refuted the allegations, saying, “We do not set prices based on a rider’s phone manufacturer.”

The pricing controversy gained attention in December 2024 after a viral social media post showed two phones displaying different fares for the same Uber ride, leading to widespread debate. Consumer Affairs Minister Pralhad Joshi called such differential pricing an “unfair trade practice” and announced that the government would expand its investigation into pricing strategies used by food delivery services and online ticketing platforms to ensure transparency and prevent potential consumer exploitation.

With the introduction of Sahkar Taxi, the government is entering the competitive app-based transport sector, where companies are already competing for a share of the market in India, the world’s most populous country. The timeline for launch and operational details of the new cooperative taxi service are expected to be announced in the coming months.