India to Launch Sahkar Taxi

March 28, 2025

The Government of India is set to launch “Sahkar Taxi,” a cooperative-based taxi service. This initiative aims to provide a viable alternative to popular ride-hailing platforms such as Ola and Uber. Union Minister Amit Shah announced this plan in Parliament, denoting its focus on benefiting drivers directly rather than large corporations. The service will encompass two-wheeler taxis, auto-rickshaws, and four-wheeler taxis across the country.

Background

India’s ride-hailing market has expanded rapidly. Platforms like Ola and Uber have become household names. However, these companies face challenges in meeting rising consumer demand. A shortage of vehicles has been cited as a major issue. High asset ownership costs also contribute to this struggle. The market is projected to grow, reaching $44.18 billion by 2030.

Features of Sahkar Taxi

Sahkar Taxi will operate on a cooperative model. This means that all profits generated will go directly to the drivers. This approach contrasts with existing services where profits are shared with large corporations. The government aims to empower drivers financially. The service will also include a cooperative insurance company to provide insurance for drivers.

Comparison with Existing Services

Sahkar Taxi is designed to be more advantageous for drivers compared to traditional ride-hailing platforms. For instance, the existing model allows companies to take cut of the earnings. In contrast, Sahkar Taxi will ensure that drivers receive the full fare. This model has already been successfully implemented in several states.

Regional Initiatives

Various states have experimented with cooperative taxi services. West Bengal’s “Yatri Sathi” has expanded beyond Kolkata. It offers local language support, affordable fares, and 24/7 customer service. Kerala’s “Kerala Savaari” is another example, although it is currently being relaunched with updated technology and competitive pricing. These initiatives tell the growing trend towards cooperative models in the transport sector.

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