The Indian government has unveiled plans to launch “Sahkar Taxi,” a cooperative-based ride-hailing service designed to challenge the dominance of Ola and Uber, sparking enthusiasm among drivers and raising questions about its feasibility. As announced by Union Home Minister Amit Shah in Parliament, this initiative aligns with Prime Minister Narendra Modi’s vision of “Sahkar Se Samriddhi” (Prosperity through Cooperation). Unlike private players, where companies pocket a significant share of earnings (often 20-30% commissions), Sahkar Taxi promises to redirect all profits to drivers by cutting out intermediaries. The service will encompass two-wheeler taxis, auto-rickshaws, and four-wheeler taxis, offering a broad alternative while aiming to empower drivers and provide affordable, transparent fares for passengers. The Telangana Gig and Platform Workers’ Union (TGPWU) has cheered the move, urging quick implementation to ensure fair earnings and worker representation, especially amid complaints about Ola and Uber’s practices—like charging different fares based on device type (iPhone vs. Android), which has drawn regulatory scrutiny.
Benefits
The cooperative model brings clear advantages. Drivers stand to gain the most, with all profits flowing directly to them, addressing long-standing grievances over exploitative commissions and boosting their livelihoods. Passengers could benefit from lower fares due to the absence of corporate profit margins, while transparency might curb issues like fare manipulation. The inclusion of diverse vehicle types could create jobs, particularly in rural or semi-urban areas, and government backing offers stability, potential subsidies, and integration with public transport systems—giving it a unique edge.
Disadvantages
However, challenges loom large. Government-run ventures often grapple with inefficiencies, as evidenced by Kerala Savaari’s initial shutdown due to low usage and operational hiccups (despite a planned relaunch). Sahkar Taxi risks similar pitfalls: a clunky app or poor user experience could deter passengers accustomed to the polished convenience of Ola and Uber. Adoption remains uncertain—private giants could counter with price wars or driver incentives, squeezing the newcomer’s market share. Funding is another concern; without a clear revenue model beyond driver profits, the service might rely heavily on taxpayer money, raising sustainability questions. Bureaucratic red tape could also hamper innovation, slowing its ability to compete with agile private firms.
Government’s Role
The government’s primary business is to run the country, not to operate commercial enterprises. While Sahkar Taxi aligns with welfare goals, critics might argue that resources would be better directed toward improving infrastructure or regulating private players rather than launching a state-backed rival. Success will hinge on execution—a domain where government initiatives don’t always excel.
Set to roll out in the coming months (though no exact date is confirmed), Sahkar Taxi could reshape India’s ride-hailing landscape if it balances driver empowerment with passenger satisfaction. Yet, with Ola and Uber’s entrenched dominance and lessons from past failures like Kerala Savaari, its ability to deliver on promises remains uncertain. For now, drivers cheer the prospect of a fairer system, but the road ahead will test whether this cooperative vision can truly disrupt the duopoly.
