Centre launches Bharat Taxi, a cooperative challenge to Ola and Uber

The Central government has launched Bharat Taxi, India’s first cooperative taxi service, designed to give drivers ownership of their income and provide commuters with a state-supervised alternative to private platforms such as Ola and Uber, NDTV reported.

Developed under the Union Ministry of Cooperation and the National e-Governance Division (NeGD), Bharat Taxi is positioned as a cooperative model that returns full fare revenue to drivers. Unlike private aggregators, who charge commissions of up to 25 per cent, Bharat Taxi drivers will operate under a membership-based system, paying only a nominal daily, weekly or monthly fee to the cooperative.

Officials said the move responds to long-standing complaints from both passengers and drivers about the practices of app-based taxi companies — from inconsistent pricing and poor service standards to high commission structures. The government said the cooperative framework would ensure fair wages, price transparency and operational accountability.

The pilot phase of Bharat Taxi will begin in November in Delhi with 650 vehicles operated by owner-drivers. If successful, a broader rollout will follow in December, covering major Indian cities including Mumbai, Pune, Lucknow, Bhopal and Jaipur.

According to NDTV, around 5,000 drivers, both men and women, will join the service in its initial national phase. The government plans to expand the network to 20 cities within the next year, with a long-term goal of reaching district headquarters and rural areas by 2030, supported by 1 lakh drivers nationwide.

The platform will be run by Sahakar Taxi Cooperative Limited, a new entity formed in June 2025 with an initial corpus of ₹300 crore. Unlike a corporate enterprise, the cooperative will be collectively owned by driver-members, each entitled to profits and decision-making participation. Oversight will rest with a governing council led by Jayen Mehta, Managing Director of the Gujarat Cooperative Milk Marketing Federation (Amul), with Rohit Gupta, Deputy Managing Director of the National Cooperative Development Corporation (NCDC), serving as Vice Chairman.

Government officials described Bharat Taxi as a “driver-first” model aligned with the broader vision of building a cooperative economy. The initiative reflects the Centre’s push to replicate successful cooperative frameworks from agriculture and dairy into the service economy, giving workers greater control over value creation.

If Bharat Taxi gains traction, it could significantly disrupt India’s ride-hailing market, estimated at more than ₹50,000 crore annually, and dominated by global players for nearly a decade. By emphasising ownership, transparency and fair pay, policymakers hope the cooperative structure will set new benchmarks for equitable digital platforms in the country.