Union Home and Cooperation Minister Amit Shah announced on Wednesday, March 26, that the government is set to introduce 'Sahkar' taxi, a cooperative-run ride-hailing service designed as an alternative to private aggregators like Uber and Ola.
Speaking during a debate in the Lok Sabha, Shah stated that this initiative aligns with Prime Minister Narendra Modi’s vision of "sahkar se samriddhi" (prosperity through cooperation).
He emphasiSed that the model aims to empower drivers by ensuring that profits remain within the cooperative framework rather than being siphoned off by corporate entities.
"In the coming months, we will launch a large-scale cooperative taxi service, modeled after Uber and Ola, but structured to directly benefit drivers," Shah announced. He reiterated that the earnings generated from this cooperative society would go directly to the drivers rather than business owners, ensuring a more equitable distribution of profits.
The 'Sahkar' platform will cater to a broad range of ride-hailing services, encompassing two-wheeler taxis, auto-rickshaws, and four-wheelers, making it a comprehensive mobility solution.
This initiative builds upon previous cooperative-based transportation models. In June 2022, the National Tourism and Transport Cooperative Federation, an apex cooperative body under the central government, had also proposed a similar cab-hailing service.
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The announcement comes at a time when major ride-hailing companies are facing criticism from both drivers and consumers over pricing policies. Drivers have long raised concerns about low fares and unfair commission structures imposed by private aggregators.
On Monday, cab drivers in Hyderabad launched a ‘No AC’ campaign, refusing to turn on air conditioning in protest against the low fares offered by platforms such as Ola, Uber, and Rapido.
The Telangana Gig and Platform Workers’ Union (TGPWU) demanded a uniform fare system akin to government-mandated prepaid taxi rates, ensuring that costs like fuel, vehicle maintenance, and driver earnings are fairly accounted for.
Earlier this year, the Consumer Protection Authority (CCPA) issued notices to cab aggregators Ola and Uber after allegations surfaced that they implemented differential pricing based on users' mobile operating systems—charging varied fares for the same ride depending on whether the user had an Android or iOS device.
However, both companies have denied these allegations, asserting that their pricing models are not influenced by the type of smartphone a user owns.
With the introduction of 'Sahkar' taxi, the government aims to provide a more transparent, driver-centric ride-hailing service that prioritises fairness and economic empowerment within the cooperative sector.
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