Sahkar Taxi: A Cooperative Revolution in India’s Ride-Hailing Sector

Context:

On March 26, 2025, Union Home and Cooperation Minister Amit Shah announced the launch of ‘Sahkar Taxi,’ a cooperative-based taxi service aimed at competing with private ride-hailing giants like Ola and Uber. Unveiled during a Lok Sabha debate, this initiative reflects the government’s push towards cooperative models for economic empowerment, aligning with broader policy goals of equitable growth and self-reliance.

Key Information in Points:

• Announcement Date: Union Home and Cooperation Minister Amit Shah revealed the plan for ‘Sahkar Taxi’ on March 26, 2025, during a Lok Sabha debate on the Multi-State Cooperative Societies (Amendment) Bill, 2023.
• Service Model: ‘Sahkar Taxi’ is designed as a cooperative-run, app-based ride-hailing service, similar to Ola and Uber, focusing on driver ownership and profit-sharing.
• Vehicle Inclusion: The service will register two-wheelers, auto-rickshaws, and four-wheeler taxis, offering a diverse range of transport options.
• Profit Distribution: Unlike private aggregators, profits from ‘Sahkar Taxi’ will go directly to drivers, eliminating corporate intermediaries and enhancing their earnings.
• Timeline: The service is slated for launch in the coming months, with no specific date confirmed as of March 28, 2025, though Shah emphasized three-and-a-half years of groundwork by the Ministry of Cooperation.
• Policy Alignment: The initiative aligns with PM Narendra Modi’s vision of ‘Sahkar Se Samriddhi’ (Prosperity through Cooperation), promoting cooperative models for economic self-reliance.
• Legislative Context: The announcement coincided with discussions on the Multi-State Cooperative Societies (Amendment) Bill, 2023, which also proposes a national cooperative university.
• Driver Empowerment: Shah highlighted that the cooperative structure ensures drivers are both members and beneficiaries, fostering financial independence.
• Market Competition: ‘Sahkar Taxi’ aims to challenge the dominance of private ride-hailing platforms like Ola, Uber, and Rapido, which have faced criticism for high commissions and pricing issues.
• Consumer Protection Backdrop: The Central Consumer Protection Authority (CCPA) recently issued notices to Ola and Uber over allegations of differential pricing, reflecting growing regulatory scrutiny of private aggregators.
• Pilot Possibility: While not explicitly stated, Shah hinted at a potential phased rollout, with pilot testing in select cities before a nationwide launch, following standard practice.
• Gig Economy Reform: The initiative is part of broader efforts to reform the gig economy, addressing driver grievances over low earnings and unfair practices by private platforms.
• Cooperative Ecosystem: Alongside ‘Sahkar Taxi,’ Shah announced plans for a cooperative insurance company to strengthen the cooperative sector, aiming to make it a major private-sector player.

Key Terms:

• Sahkar Taxi: A government-backed cooperative taxi service to rival private ride-hailing apps.
• Cooperative Model: A business structure where members (drivers) own and manage operations, sharing profits.
• Sahkar Se Samriddhi: PM Modi’s slogan meaning ‘Prosperity through Cooperation,’ guiding cooperative initiatives.
• Multi-State Cooperative Societies (Amendment) Bill, 2023: Legislation enhancing the framework for cooperative societies across states.
• Gig Economy: A labor market characterized by short-term, flexible jobs, often through digital platforms.
• Central Consumer Protection Authority (CCPA): Regulatory body addressing unfair trade practices in consumer markets.
• Differential Pricing: Charging varying rates for the same service, a concern with private ride-hailing apps.

Link To The Original Article – https://www.thehindu.com/news/national/government-to-launch-ola-uber-like-sahkar-taxi-service-amit-shah-announces-in-parliament/article69384921.ece