What Is 'Sahkar Taxi'? Ola, Uber Competitor Set To Be Introduced By Govt To Benefit Drivers

Unlike other app-based services like Ola and Uber, the "Sahkar Taxi" initiative will ensure that all the profits go directly to the drivers, rather than large corporations.

Shah said the government is going to launch Sahkar Taxi on a cooperative model, like the Ola and Uber. 

Source : ABPLIVE AI

The government is set to launch a new cooperative-based taxi service called "Sahkar Taxi" to offer an alternative to ride-hailing platforms like Ola and Uber.

Union Minister Amit Shah announced the government's proposal in the Parliament on Wednesday, stating that the new service will register two-wheeler taxis, rickshaws, and four-wheeler taxis.

Unlike other app-based services like Ola and Uber, the "Sahkar Taxi" initiative will ensure that all the profits go directly to the drivers, rather than large corporations.

What Is Sahkar Taxi?

Union Home Minister Amit Shah said that the Ministry of Cooperation has worked hard in the past years and added that the government is going to launch Sahkar Taxi on a cooperative model, like the Ola and Uber. 

"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," Amit Shah said in the parliament.

Union Home and Cooperation Minister @AmitShah has announced that the government will launch the 'Sahkar' taxi, a cooperative-run ride-hailing service modelled after Uber and Ola.

He said that the initiative is in line with Sahkar Se Samriddhi (Prosperity through Cooperatives).… pic.twitter.com/71IgnHh3Zh

— All India Radio News (@airnewsalerts) March 27, 2025

Shah said that the Sahkar Taxi will register the two-wheelers, four-wheelers and autorickshaws, and the profit will go directly to the drivers.

The minister also said that the government is coming up with a cooperative insurance company, which will look after the insurance of the cooperative sector.

Need For Sahkar Taxi?

The announcement from the government comes amid growing scrutiny of ride-hailing platforms like Ola and Uber amid allegations of discriminatory pricing.

Earlier in January, the Central Consumer Protection Authority (CCPA) launched an investigation into Ola and Uber over alleged "differential pricing" practices. 

Consumer Affairs Minister Pralhad Joshi called these actions “unfair trade practices” and emphasized the need for transparency.

However, Uber denied tailoring prices based on phone models. In a statement, the company clarified, “Hi there, multiple differences in these two rides impact the prices. The pick-up point, ETA, and drop-off point on these requests vary, which will cause different fares. Uber does not personalise trip pricing based on a rider’s cell phone manufacturer.” 

Ola also refuted the claims of platform-based price discrimination. "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," the company said.

The controversy gained traction in December 2024 after a social media post on X showed two phones displaying different fares for the same Uber ride, sparking widespread debate.

Is Sahkar Taxi First Of Its Kind Initiative?

A similar model is already in action in West Bengal where Yatri Sathi allows quick dispatch, affordable fares and local language support, according to The Economic Times.

The initiative by the Mamata Banerjee-led government was initially introduced in Kolkata, but expanded to Siliguri, Asansol and Durgapur. 

In Karnataka, Namma Yathri, a privately owned taxi services app also ensures the profits go directly to the drivers.