Bharat Taxi: Cooperative Ride-Hailing Model

Why in News ?

The Government of India has launched the Bharat Taxi Initiative, a cooperative-driven, citizen-first national ride-hailing platform, aimed at empowering drivers by making them co-owners of the platform and reducing dependence on profit-driven private cab aggregators.

Background & Context

India’s ride-hailing sector has expanded rapidly with the growth of the gig economy, but concerns persist over:

• High platform commissions
• Surge pricing
• Limited social security for drivers
• Asymmetric bargaining power between platforms and workers

In line with the vision of the Ministry of Cooperation—to strengthen cooperatives as engines of inclusive growth—the Bharat Taxi initiative seeks to introduce a platform cooperative model, combining digital public infrastructure with cooperative ownership to ensure fair incomes, transparency, and sustainability for drivers.

Bharat Taxi Initiative: An Overview

• Bharat Taxi is India’s first cooperative-based national ride-hailing network.
• It is a government-supported initiative developed under:
  • The Union Ministry of Cooperation
  • The National e-Governance Division (NeGD)
• The platform enables drivers to become:
  • Shareholders
  • Co-owners with decision-making rights
• It aims to offer affordable, predictable, and transparent mobility services to citizens while ensuring dignified livelihoods for drivers.

Promoting Institutions

The initiative is jointly promoted by major cooperative and financial institutions, including:

• National Cooperative Development Corporation (NCDC)
  • IFFCO
  • AMUL
  • KRIBHCO
  • NAFED
  • NABARD
  • NDDB
• National Cooperative Exports Limited (NCEL)

This broad institutional backing strengthens financial viability, governance, and nationwide scalability.

Key Features of the Bharat Taxi Initiative

1. Driver-Owned Cooperative Model

• Drivers can purchase shares and become cooperative members.
• Ensures:
  • Ownership rights
  • Participation in decision-making
  • Greater income transparency

2. Zero Commission Structure

• Unlike private ride-hailing platforms, no commission is deducted.
• 100% of the fare is transferred directly to drivers, improving take-home earnings.

3. Transparent and No-Surge Pricing

• Eliminates surge pricing practices.
• Ensures predictable and citizen-friendly fares, enhancing consumer trust.

4. Deep Digital Integration

• Integration with national digital public platforms, including:
  • DigiLocker – identity and document verification
  • UMANG – unified access to government services
  • API Setu – interoperability across platforms
• Enables seamless onboarding, authentication, and service delivery.

5. Security, Compliance and Infrastructure

• Adherence to:
  • Government of India data protection norms
  • Cybersecurity standards
• Focus on robust, scalable, and secure technical architecture to support nationwide operations.

Significance of the Initiative

• For Drivers:
  • Higher and more stable incomes
  • Ownership-based empowerment instead of contractor dependence
  • Enhanced social and economic security
• For Consumers:
  • Affordable rides
  • Transparent pricing
  • Reduced price volatility
• For the Economy:
  • Promotes platform cooperativism in the gig economy
  • Strengthens digital public infrastructure-led service delivery
  • Aligns with Atmanirbhar Bharat and inclusive growth objectives

Challenges and Way Forward

• Scaling operations to compete with established private platforms
• Ensuring service quality and fleet availability
• Building user trust and app adoption
• Long-term sustainability will depend on:
  • Strong cooperative governance
  • Continuous technology upgrades
  • Integration with urban transport policies and State-level mobility initiatives