New Delhi: Union Home and Cooperation Minister Amit Shah has announced an ambitious plan to transform India’s taxi sector with a new app-based taxi service run entirely on a cooperative model, giving drivers ownership and a direct share of profits.
Speaking at a national seminar in Mumbai on 20 June, organised to mark the International Year of Cooperatives 2025, Shah shared details of the upcoming initiative aimed at strengthening the cooperative ecosystem.
“A taxi service based on the cooperative model will also be launched, in which taxi drivers will not only be made members but will also act as the owners, with profits directly credited to their bank accounts,” he said, explaining that the approach would ensure fair income for drivers and reduce middlemen costs often associated with aggregator platforms like Ola and Uber.
He also revealed that the government would soon lay the foundation stone for the Tribhuvan Sahkari University, adding a dedicated institution for cooperative education and capacity building.
To expand the cooperative sector’s footprint in insurance, Shah announced that plans were underway to set up a fully cooperative-owned insurance company. “By increasing the cooperative sector's share in insurance, a fully cooperative-owned insurance company will soon be established, opening up many new opportunities,” he said.
Earlier in March, Shah had shared the government’s intention to roll out the ‘Sahkar’ app-based taxi service during a Parliament debate on the Multi-State Cooperative Societies (Amendment) Bill, 2023. The service will register two-wheelers, four-wheelers and rickshaws under the cooperative umbrella, with drivers becoming both stakeholders and service providers.
These initiatives reflect the government’s broader push to revive and modernise India’s cooperative movement, giving workers greater economic control and income security in key service sectors.
BI Bureau
