New Delhi:Â Union Home Minister Amit Shah has announced the launch of Sahkar Taxi, a cooperative-based ride-hailing service aimed at providing drivers greater control over their earnings.
The initiative has been launched to challenge the dominance of ride-hailing giants like Ola and Uber by eliminating commission fees and allowing drivers to keep the entirety of their fares.
Why is the initiative important?
Addressing the Lok Sabha, Shah explained that Sahkar (which in English means “cooperation” or “co-operative”) Taxi would enable cooperative societies to register taxis, rickshaws and other vehicles directly, without third-party intermediaries.
Inspired by existing app-based ride services, the model prioritizes driver empowerment and equitable profit distribution. He confirmed that a large-scale cooperative taxi service would be launched in the coming months, ensuring that profits flow directly to drivers instead of being deducted through commission-based structures.
The announcement comes at a time when Ola and Uber are facing increased scrutiny over their pricing models. Recently, the Central Consumer Protection Authority (CCPA) issued notices to both companies following allegations of fare discrepancies based on users’ phone types. Reports suggested that Android and iPhone users were being charged different prices for the same ride, sparking consumer outrage.
Both companies denied the allegations, with Ola asserting a uniform pricing structure across all platforms and Uber stating that it does not differentiate fares based on phone manufacturers. The controversy gained traction in December 2024 after a viral post highlighted differing Uber fare quotes on two separate devices.
Alignment with ‘Sahkar Se Samriddhi’
The initiative aligns with Prime Minister Narendra Modi’s vision of ‘Sahkar Se Samriddhi’ (Prosperity through Cooperation), which promotes economic upliftment through cooperative models.
Union Minister Shah emphasized that this effort is part of broader gig economy reforms aiming to protect drivers from exploitative pricing policies enforced by dominant platforms.
Consumer Affairs Minister Pralhad Joshi described the situation as an “unfair trade practice” and announced an expanded investigation into pricing discrepancies across sectors like food delivery and online ticketing.
With Sahkar Taxi, the government aims to establish a fair, cooperative-driven economic model that prioritizes drivers’ welfare, offering a transparent and commission-free alternative in the ride-hailing industry.
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