In a move that could reshape India’s ride-hailing industry, Union Home and Cooperation Minister Amit Shah announced the launch of Sahkar Taxi—a cooperative-based alternative to global giants like Uber and Ola. This initiative is not just about providing another taxi service; it’s about economic democracy, where drivers aren’t just workers but stakeholders in their own enterprise.
Speaking in Parliament, Shah emphasized that Sahkar se Samruddhi (Prosperity through Cooperation) is at the heart of this initiative. Unlike corporate-run platforms where profits flow to distant shareholders, Sahkar Taxi’s earnings will go directly to the drivers, ensuring fair wages and better livelihoods.
This is more than a policy—it’s a quiet revolution for India’s gig workers, who have long struggled with high commissions, unpredictable earnings, and lack of bargaining power. With Sahkar Taxi, the government aims to break the duopoly of Uber and Ola while fostering a self-sustaining ecosystem owned and operated by drivers themselves.
Why Sahkar Taxi? The Human Story Behind the Policy
For years, ride-hailing drivers have voiced their frustrations:
- High Commissions: Uber and Ola take 20-30% of every fare, leaving drivers with meager take-home pay.
- Unfair Deactivation: Drivers often face sudden bans without clear explanations, jeopardizing their livelihoods.
- No Social Security: Unlike traditional employees, gig workers get no pensions, health benefits, or job security.
- Sahkar Taxi seeks to change this by putting drivers in control. Imagine a system where:
- Drivers are co-owners, not just contractors.
- Profits are shared fairly, not siphoned off by corporations.
- Decisions are made collectively, ensuring transparency and accountability.
This isn’t just theory—similar models have already shown promise. "Namma Yatri" in Bengaluru and "Sewa Cab" in Delhi are driver-owned initiatives that have gained traction. Now, with government backing, Sahkar Taxi could scale this model nationwide.
How Will Sahkar Taxi Work?
The service will operate as a cooperative society, meaning:
- Owned by Drivers: Each member has an equal say in operations.
- Lower Operational Costs: Without corporate middlemen, more earnings stay with drivers.
- Multi-Vehicle Inclusion: Two-wheelers, autos, and cars—all under one umbrella.
Key Features:
- Zero or Minimal Commission (Unlike Uber/Ola’s 20-30% cut)
- Direct Earnings Transfer (No delays or hidden deductions)
- Democratic Governance (Drivers vote on policies)
- Government-Backed Trust (Ensures transparency)
Will It Succeed? Challenges & Opportunities
Strengths:
✅ Strong Government Support– The Ministry of Cooperation is actively involved.
✅ Growing Driver Discontent – Many are eager for alternatives.
✅ Proven Local Models – Namma Yatri, Sewa Cab show demand exists.
Challenges:
⚠ Competing with Tech Giants – Uber/Ola have deep pockets and brand recognition.
⚠ Scaling Nationwide – Requires seamless tech infrastructure.
⚠ Changing User Habits– Convincing riders to switch may take time.
But if successful, Sahkar Taxi could rewrite the rules of India’s gig economy.
FAQs About Sahkar Taxi
1. How is Sahkar Taxi different from Uber/Ola?
Unlike Uber and Ola, which are profit-driven corporations, Sahkar Taxi is a driver-owned cooperative. Earnings go back to drivers, not investors.
2. Will it be cheaper for riders?
Possibly. Since commissions are lower, fares could be more competitive. However, the focus is on fair pay for drivers, not undercutting prices.
3. Which cities will it launch in first?
No official list yet, but expect metros and high-demand cities initially, followed by tier-2/3 expansion.
4. Can existing Uber/Ola drivers join?
Yes! The idea is to absorb independent drivers looking for better terms.
5. What about technology? Will the app be user-friendly?
Details are scarce, but the government will likely partner with tech firms to ensure a smooth experience.
A New Dawn for India’s Gig Workers?
Sahkar Taxi isn’t just another ride-hailing app—it’s a bold experiment in economic justice. If executed well, it could:
✔ Reduce exploitation in the gig economy.
✔ Empower drivers as entrepreneurs, not just laborers.
✔ Challenge corporate dominance with a people-first model.
For millions of drivers tired of the Uber-Ola grind, this could be the light at the end of the tunnel.
The road ahead won’t be easy—but if cooperation triumphs over corporate control, Sahkar Taxi might just change the game forever.