Bharat Taxi: India’s Cooperative Ride-Hailing Experiment Challenging Platform Dominance

Why in News ?

Union Cooperation Minister Amit Shah has launched Bharat Taxi, India’s first cooperative-based ride-hailing platform, positioning it as a people-centric alternative to private cab aggregators such as Uber, Ola, and Rapido. The initiative aims to strengthen the cooperative movement, enhance driver autonomy, and offer affordable urban mobility through a driver-owned platform model.

Background and Context

• India’s urban transport landscape has been transformed by digital ride-hailing platforms over the past decade.
• While aggregators have improved convenience and connectivity, they have also drawn criticism for:
  • High commission rates,
  • Opaque pricing mechanisms (surge pricing),
  • Declining driver earnings,
  • Limited driver autonomy.
• Simultaneously, the government has sought to revive and modernise the cooperative movement, especially beyond traditional sectors like dairy, agriculture and banking.
• The creation of a separate Ministry of Cooperation in 2021 signalled a renewed focus on cooperative-led economic models.
• Bharat Taxi emerges at the intersection of these two trends:
  • Reforming the gig economy,
  • Revitalising cooperatives in the digital age.

What is Bharat Taxi ?

• A cooperative-based ride-hailing platform: Bharat Taxi is a digital cab-hailing service built on a cooperative ownership model rather than a private aggregator structure.
• Drivers at the core: Drivers—called Sarathis—are placed at the centre of ownership, operations and value creation, giving them greater control over earnings and platform governance.
• Reducing dependence on private aggregators: The platform aims to free drivers from commission-heavy, algorithm-driven systems that often limit income and bargaining power.
• Not a direct government-run app: Although government-backed, Bharat Taxi is operated by Sahakar Taxi Cooperative Limited, an independent cooperative entity.
• Cooperative expertise behind the project: The initiative draws inspiration from successful cooperative models such as Amul, applying similar principles to the digital mobility sector.

Bharat Taxi’s Cooperative Business Model

1. Driver-Owned Structure

• Every driver (Sarathi) is a member of the cooperative.
• Each holds five shares, giving them:
  • Ownership rights,
  • Voting power,
• A say in governance and operational decisions.

2. Zero-Commission Pricing

• Unlike private aggregators, Bharat Taxi:
  • Does not deduct a commission per ride.
  • Charges a fixed daily platform fee:
    • ₹30 per day for cabs,
    • ₹18 per day for auto-rickshaws.
• This directly addresses driver concerns over shrinking incomes under commission-based models.

3. Lower Fares for Passengers

• Without per-ride commissions, savings are passed on to riders.
• Officials estimate fares to be up to 30% cheaper than platforms like Uber and Ola.

4. Large and Growing Driver Base

• Bharat Taxi reports:
  • Over 4 lakh registered drivers.
• This signals strong early interest among drivers seeking fairer working conditions.

5. Safety and Verification Measures

• In-built safety features and a dedicated helpline.
• Driver verification processes.
• In partnership with Delhi Police, 35 special booths have been set up to quickly address passenger complaints and safety concerns.

6. Pricing Philosophy

• The platform seeks to avoid opaque surge pricing.
• Its stated goal is not to be the cheapest, but the most fair, transparent, and predictable.

Pilot Cities, Expansion and Early Experience

• Pilot Phase:
  • Launched initially in Delhi-NCR and Rajkot in late 2025.
• Expansion:
  • Rapid growth in cities such as Ahmedabad.
• Current Scale:
  • Around 4 lakh drivers registered.
  • Over 10,000 rides completed daily.
• Target:
  • Nationwide operations by 2029, with the ambition to become India’s largest ride-hailing platform.

Early Adopters: Hope Mixed with Caution

• Drivers:
  • Welcome the zero-commission model.
  • Initially report lower earnings due to fewer bookings.
  • Remain optimistic that demand will grow with awareness.
• Passengers:
  • Some report teething issues such as:
  • Staff unfamiliarity with software at booths,
  • Longer queues,
  • Higher fares at some locations compared to earlier prepaid services.
• Official Response:
  • Authorities acknowledge early challenges.
  • Pricing algorithms and operational systems are expected to improve as more data is gathered.

Significance of Bharat Taxi

1. Strengthening the Cooperative Movement

• Demonstrates that cooperative models can be adapted to:
  • Digital platforms,
  • Urban services,
  • The gig economy.
• Extends cooperative principles beyond agriculture and dairy into modern service sectors.

2. Empowering Gig Workers

• Shifts drivers from being:
  • Platform-dependent contractors
  • To co-owners and stakeholders.
• Enhances income security, autonomy, and dignity of labour.

3. Promoting Fair Competition

• Introduces a people-centric alternative in a market dominated by a few private aggregators.
• Could exert competitive pressure to:
  • Reduce commissions,
  • Improve transparency,
  • Enhance worker welfare across the sector.

4. Advancing Affordable Urban Mobility

• Lower fares and transparent pricing benefit:
  • Urban commuters,
  • Students,
  • Low-income households.
• Supports inclusive and accessible transport systems.

5. Aligning with Broader Governance Goals

• Reinforces the government’s vision of:
  • “Sahakar se Samriddhi” (Prosperity through Cooperation),
  • Inclusive growth,
  • Ethical platform capitalism.

The Road Ahead

• Bharat Taxi’s early phase reflects:
  • Strong government backing,
  • Rapid driver onboarding,
  • High public expectations.
• Its long-term success will depend on:
  • Scaling ride volumes,
  • Refining pricing algorithms,
  • Ensuring consistent service quality,
  • Retaining driver trust while attracting passengers.
• Balancing commercial viability with cooperative values will be the defining challenge.