Why in news?

Union Cooperation Minister Amit Shah has launched Bharat Taxi, India’s first cooperative-based ride-hailing platform, positioning it as an alternative to private cab aggregators. The initiative is aimed at strengthening the cooperative movement while improving access to affordable and people-centric urban transport.

According to the Ministry of Cooperation, Bharat Taxi places drivers—called Sarathis—at the centre of the platform. Unlike aggregator-led models, drivers will have ownership, operational control, and greater say over earnings, reducing dependence on commission-heavy digital platforms.

The model seeks to enhance driver autonomy and ensure fairer income distribution through a cooperative structure.

What’s in Today’s Article?

• What is Bharat Taxi
• Bharat Taxi’s Cooperative Business Model
• Pilot Cities and Expansion
• The Road Ahead

What is Bharat Taxi?

• A cooperative-based ride-hailing platform - Bharat Taxi is a ride-hailing app built on a cooperative model, aimed at offering an alternative to privately owned cab aggregators.
• Drivers at the core - According to the Ministry of Cooperation, the platform places drivers at the centre of ownership, operations, and value creation, allowing them greater control over earnings and day-to-day functioning.
• Reducing dependence on private aggregators - The model is intended to help drivers move away from exploitative practices often associated with aggregator-led platforms that limit income and autonomy.
• Not a direct government initiative - While government-backed, Bharat Taxi is not run by the Government of India. It is operated by Sahakar Taxi Cooperative Limited, an independent cooperative entity.
• Cooperative expertise behind the project - The initiative is supported by individuals who have previously worked with Amul, drawing on experience from one of the world’s most successful cooperative movements.

Bharat Taxi’s Cooperative Business Model

• Driver-owned structure - Under Bharat Taxi, every driver—called a Sarathi—is a member of the cooperative and holds five shares, giving them a stake in ownership and decision-making.
• Zero-commission pricing - Unlike private aggregators, Bharat Taxi does not deduct commission per ride. Drivers instead pay a fixed daily fee of ₹30 (₹18/day for auto-rickshaws) to use the platform, addressing long-standing concerns over high commissions and limited autonomy.
• Lower fares for passengers - With no per-ride commission, cost savings are passed on to riders. Officials estimate fares to be up to 30% cheaper than those charged by platforms like Uber and Ola.
• Large driver base - Bharat Taxi has stated that it already has over four lakh registered drivers, indicating significant early adoption of the cooperative model.
• Safety and verification measures - The platform includes in-built safety features, a dedicated helpline, and driver verification. In partnership with Delhi Police, 35 special booths have been set up to quickly address passenger complaints and concerns.
• Pricing Philosophy - Bharat Taxi aims to offer fair, transparent pricing, avoiding opaque surge pricing. The goal is not to be the cheapest, but the most reasonable and predictable.

Pilot Cities and Expansion

• Bharat Taxi pilots began in Delhi-NCR and Rajkot in late 2025.
• The service has since expanded to cities like Ahmedabad, where adoption has been rapid.
• As per government data:
  • Around 4 lakh drivers are registered.
  • Over 10,000 rides daily are being completed.
• The aim is nationwide operations by 2029, making it the largest ride-hailing platform in India.
• Early Adopters: Hope Mixed with Caution
  • The early adopters have welcomed the zero-commission model but report initially lower earnings due to fewer bookings.
  • Despite this, both drivers remain hopeful that demand will rise as awareness grows.
  • Many drivers say they prefer a driver-owned, cooperative platform over private aggregators that take high commissions.
  • Some passengers report teething troubles, such as:
    • Staff unfamiliar with software at booths.
    • Longer queues.
  • Higher fares at certain locations compared to earlier prepaid services.
  • Officials acknowledge early challenges and say pricing algorithms and operations will improve as more data is gathered.

The Road Ahead

• Bharat Taxi’s early phase reflects strong government backing, rapid driver onboarding, and high expectations, but also the realities of building scale in a competitive market.
• Its success will depend on increasing ride volumes, refining pricing, and delivering consistent user experience, while staying true to its cooperative promise.