Sahkar Taxi Announced: Government’s Big Move to Empower Drivers and Challenge Ola, Uber and Rapido
The government has announced a plan to upgrade the cooperative model in new sectors, focusing on the development of the unorganised sector through an ownership-based system. The initiative aims to reduce exploitation of weaker sections by influential private companies and create opportunities for self-employment. One such proposed initiative is Sahkar Taxi Cooperative Limited, which is expected to emerge as an alternative to existing ride-hailing platforms like Ola, Uber, and Rapido.
Why the Cooperative Model Is Being Expanded Into Mobility
Upgrading the cooperative model in new sectors means strengthening the unorganised workforce by allowing workers to become owners rather than only service providers. This model is being promoted as a way to ensure dignity, fair income distribution, and long-term economic security. The government believes cooperative ownership can help control exploitation and improve social conditions for workers.
App-Based Cabs Have Become a Daily Necessity
Cab and taxi companies such as Ola, Uber, and Rapido have become an important part of everyday travel. Whether it is two-wheelers, three-wheelers, or four-wheelers, demand has increased significantly. People who want to save time and money often book bikes, autos, or taxis for convenience, making these platforms almost unavoidable in urban life.
Concerns Around Safety, Pricing and Driver Earnings
Along with convenience, several challenges have also surfaced. Safety measures, lack of fixed pricing, and company commissions remain key concerns. Many drivers feel dissatisfied as they must share a significant part of their earnings with these platforms simply for using their applications. This has affected their income stability and sense of ownership.
Sahkar Taxi: A Proposed Cooperative Alternative
To address these issues, Union Minister Amit Shah, under the leadership of Prime Minister Narendra Modi, has announced Sahkar Taxi, also referred to as Bharat Taxi, a proposed cooperative-based cab application backed by the Government of India. Under this model, drivers who join the platform are expected to be owners of their taxis rather than employees of private companies.
Sahkar Taxi is planned as a cooperative app, neither private nor fully public. According to the proposal, taxi owners would not be required to share a large portion of their earnings with companies. Instead, a nominal fee structure has been discussed, allowing drivers to retain most of their income.
Planned Benefits Beyond Ride Earnings
The proposed model also includes additional benefits for drivers and their families. These include access to health insurance, government employment schemes, loans, and subsidies. The cooperative structure is expected to support long-term financial security and social welfare.
The concept is inspired by successful cooperative institutions such as Amul, IFFCO, and KRIBHCO, which have demonstrated how collective ownership can lead to sustainable growth.
Sarthi Didi: A Safety-Oriented Plan for Women
The initiative also proposes a separate platform named Sarthi Didi, where women drivers would provide services specifically for women and girls. This is expected to address safety concerns faced by female passengers and create employment opportunities for women in the mobility sector.
Ownership, Dignity and Self-Respect at the Core
The idea of Saarthis and Sarthi Didis reflects an effort to uplift small and middle-class workers by giving them a platform to work for themselves. Under this model, drivers are expected to keep a larger share of their earnings, which could improve their financial stability, social standing, and sense of dignity.
Current Status and Future Expectations
As per official statements, Sahkar Taxi was announced on 6 June 2025 and is expected to be introduced in phases, beginning with regions such as Gujarat and Delhi. The proposal includes safety features like SOS alerts and a complaint redressal system to ensure fair action. Only eligible drivers with verified documents are expected to be approved.
Union Minister Amit Shah has expressed optimism that the cooperative taxi model could expand across India within the next few years, strengthening confidence among drivers and passengers alike.
This article aims to provide insight into a proposed reform in India’s mobility sector. Readers are advised to follow official updates for confirmed launch details and further developments.
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