Govt to launch Sahkar Taxi to challenge private cab-hailing apps

Union Home and Cooperation Minister Amit Shah said the government will launch ‘Sahkar Taxi'—a cooperative-run ride-hailing app, as it looks to disrupt the segment.

Shah, who was speaking during a debate in Lab Sabha, said the initiative keeps in mind the Prime Minister’s slogan of “Sahkar se samriddhi,” which translates to 'prosperity through cooperation'.

The initiative, to be launched in the coming months, will register two-wheeler taxis, rickshaws, and four-wheeler taxis. It will implement a structure where the profits from the service will go to the drivers themselves.

This announcement comes amidst rising scrutiny in the private ride-hailing space as Ola Consumer and US-based Uber have been facing criticism over differential pricing, after a post on X showed two phones displaying different rates for an Uber ride.

The Indian government, through the Central Consumer Protection Authority (CCPA), issued notices to both Ola and Uber earlier this year amid the allegations.

Both companies have refuted the claims.

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Ride-hailing services are also facing heat from unions. The Telangana Gig and Platform Workers’ Union (TGPWU) went on a ‘no AC campaign’ this month as part of an ongoing protest against low fares charged by platforms like Ola and Uber.

In a statement, the TGPWU welcomed the Sahkar Taxi initiative, noting that the step would ensure fair earnings to drivers and eliminate intermediaries.

“We urge the government to ensure the swift and effective implementation of this initiative. Gig and platform workers have suffered from exploitative conditions for too long. A cooperative model can provide a fair alternative—one where workers set their own terms and benefit directly from their labour. We also call for the inclusion of existing worker unions and collectives in shaping the cooperative framework,” said Shaik Salauddin, Founder President of TGPWU

However, this is not the first time the government has announced such an initiative.

In 2022, the National Tourism and Transport Cooperative Federation Ltd (NFTC) announced the launch of ‘Sahakar Taxi,’ which was also structured similarly to Ola and Uber.

This initiative was expected to create jobs for more than 10 lakh people in the next few years. However, the organisation didn't offer any updates thereafter.