New Delhi: The government has announced plans to introduce a cooperative-run ride-hailing service as an alternative to private platforms such as Uber and Ola. Union Home and Cooperation Minister Amit Shah made the announcement in Parliament on Thursday, stating that the initiative aligns with Prime Minister Narendra Modi’s vision of "Sahkar se Samruddhi" (Prosperity through Cooperation).
Shah revealed that the Ministry of Cooperation has been working for the past three and a half years to develop this model, which aims to provide a sustainable and driver-centric alternative to existing ride-hailing services.
The upcoming platform, tentatively named ‘Sahkar’ taxi, will offer services for two-wheeler taxis, autorickshaws, and four-wheelers. Shah emphasized that, unlike corporate-run aggregators, the profits from this initiative would directly benefit drivers instead of business owners.
“In the coming months, we will establish a large-scale cooperative taxi service modeled after Uber and Ola,” Shah stated in Parliament.
This is not the first attempt to introduce an alternative to Uber and Ola in India. In 2017, Delhi’s taxi drivers launched Sewa Cab, a driver-owned initiative. Kerala also witnessed efforts to establish similar cooperative models. However, these initiatives struggled to compete against the established ride-hailing duopoly.
In June 2022, the National Tourism and Transport Cooperative Federation, an apex cooperative organization under the central government, also announced a similar initiative. However, its impact has remained limited.
The announcement of the new initiative comes amid increasing scrutiny of private ride-hailing platforms. Cab drivers across the country have raised concerns over low fares and alleged exploitative practices. On March 25, Hyderabad’s cab drivers launched a ‘No AC’ campaign in protest against what they describe as unfair pricing structures imposed by major aggregators like Ola, Uber, and Rapido.
Additionally, earlier this year, the Consumer Protection Authority (CCPA) issued notices to Ola and Uber over allegations of differential pricing based on users’ mobile operating systems—Android or iOS. Both companies, however, denied the allegations.
With the government-backed cooperative model set to be launched, the ride-hailing landscape in India could see significant changes in the coming months.
/BI/
