In a significant development, Union Home and Cooperation Minister Amit Shah has announced that the Central government will introduce 'Sahkar' taxi, a cooperative-run ride-hailing service modelled after Uber and Ola. While addressing a debate in Lok Sabha, Amit Shah said the initiative is in line with the Prime Minister's slogan "sahkar se samriddhi" (prosperity through cooperation).
“In the coming months, we will establish a large-scale cooperative taxi service modelled after Uber and Ola,” he said. He also added that the profits from this cooperative society will not go to businessmen but directly to the drivers. "This is the model we are bringing to life," he said.
How 'Sahkar Taxi' will benefit drivers
Amit Shah clearly mentioned that the 'Sahkar Taxi', the cooperative-based ride-hailing service has been designed to benefit drivers directly. The initiative, which is modelled after app-based services like Ola and Uber, will allow cooperative societies to register two-wheelers, taxis, rickshaws, and four-wheelers without intermediaries taking a cut from drivers' earnings.
It should be noted that a similar cab-hailing service was announced in June 2022 by the National Tourism and Transport Cooperative Federation, which is an apex Cooperative organisation under the Central government.
Ola, Uber face flak for different pricing
The announcement from Amit Shah comes amid ride-hailing services such as Ola and Uber facing flak, not just from the drivers, but also from consumers alleging differential pricing. Earlier this week, cab drivers in Hyderabad launched a ‘No AC’ campaign to protest against the low fares offered by ride-hailing platforms such as Ola, Uber, and Rapido.
In a statement, the Telangana Gig and Platform Workers’ Union (TGPWU) said that cab aggregators adopt a uniform fare system—similar to government-mandated prepaid taxi fares—that accounts for fuel costs, vehicle maintenance, and fair compensation for drivers.
The Consumer Protection Authority (CCPA) earlier this year had issued notices to major cab aggregators Ola and Uber following allegations of differential pricing for identical rides based on users' mobile operating systems — Android or iOS. However, these companies denied allegations of differential pricing based on consumers' smartphone operating system.