India’s government has launched a co-op taxi app in a bid to take on the market domination of private players like Uber and Ola.
Registered under the Multi-State Cooperative Societies Act, Sahkar Taxi Cooperative says it offers “safe, affordable, and reliable transport while supporting local drivers who earn 100% of their fare – no middlemen, no hidden charges”.
The initiative is backed by eight major co-operative organisations, including: National Cooperative Development Corporation, Amul dairy,, the National Agricultural Cooperative Marketing Federation of India, the National Bank for Agriculture and Rural Development (Nabard), the Indian Farmers Fertiliser Cooperative, Krishak Bharati Cooperative, the National Dairy Development Board and the National Cooperative Exports Limited.
Each promoter has committed ₹10 crore in the initial phase and the co-op has an overall authorised share capital of ₹300 crore, Rural Voice has reported.
The move was announced in parliament by union minister Amit Shah announced the plan in Parliament, who said the new service will register two-wheeler taxis, rickshaws, and four-wheeler taxis.
The Ministry of Cooperation says co-op is not being run solely for profit, and will charge reasonable fares, and a significant portion of the earnings will be distributed among the drivers.
Drivers will also receive social security benefits, the ministry adds.
The dominance of the ride-hailing market by corporate tech giants has long been a campaigning issue for co-op players like the Platform Cooperativism Consortium (PCC), who argue that the Uber model offers unfair working conditions and extracts capital from localities. with a number of co-op initiatives – such as the Drivers Cooperative, which operates in several US cities – set up around the world to offer a more ethical alternative.
In 2018, the PCC heard greetings from 45 taxi co-op leaders in Brazil, during its global conference in Hong Kong.
For this latest co-op foray in the taxi business, operations are expected to begin by December in Delhi, Gujarat, and Maharashtra, followed by a phased national rollout.
Around 400–500 drivers are expected to be enrolled for the initial phase, with the opportunity to become a member after six months by purchasing five shares worth ₹100 each. The co-op is also recruiting for executive positions.
A similar model already exists in West Bengal, the Economic Times reports, with the launch of Yatri Sathi.
