Govt launches Sahkar Taxi to challenge Ola and Uber
By MYBRANDBOOK
The Sahkar Taxi initiative aligns with Prime Minister Narendra Modi's "Sahkar Se Samriddhi" vision, aiming to improve drivers' economic conditions through cooperative structures, offering fairer earnings by reforming the gig economy and reducing platform commissions
Union Home Minister Amit Shah has announced the launch of Sahkar Taxi, a cooperative-based taxi service designed to give drivers more control over their earnings, directly challenging the market dominance of ride-hailing giants like Ola and Uber. The initiative aims to eliminate the commission fees charged by third-party platforms, allowing drivers to keep the entirety of their fares.
In a statement to the Lok Sabha, Shah explained that the Sahkar Taxi model would enable cooperative societies to register taxis, rickshaws, two-wheelers, and four-wheelers without the need for intermediaries. This model, while drawing inspiration from app-based ride services, focuses on putting drivers at the center, empowering them to directly benefit from their work.
“This is not just a slogan. The Ministry of Cooperation has worked relentlessly for over three years to implement this initiative,” Shah remarked. He emphasized that a major cooperative taxi service would be launched in the coming months, ensuring that the profits from rides would flow directly to the drivers, bypassing commission-based structures common in current gig economy models.
The Sahkar Taxi initiative aligns with Prime Minister Narendra Modi’s vision of 'Sahkar Se Samriddhi' (Prosperity through Cooperation), which seeks to improve the economic situation of individuals through cooperative structures. Shah described the move as part of a larger effort to reform the gig economy, ensuring that drivers, who are often at the mercy of platform rules and commissions, can benefit more equitably from their labour.
Scrutiny of Ola, Uber pricing practices
The announcement comes amid growing scrutiny of Ola and Uber, which have faced allegations of unfair pricing practices. The Central Consumer Protection Authority (CCPA) recently issued notices to both companies, following reports of fare discrepancies based on the user’s phone type. Users with Android and iPhone devices were reportedly charged different rates for the same ride.
Both Ola and Uber have denied these allegations. Ola stated it maintains a uniform pricing structure across all platforms, while Uber echoed the denial, saying it does not differentiate prices based on the user's phone manufacturer. The controversy erupted in December 2024 after a viral post showed different fare quotes for the same Uber ride on two different phones.
Consumer Affairs Minister Pralhad Joshi has called the situation an "unfair trade practice" and announced that the government would expand its investigation into pricing discrepancies in other sectors such as food delivery and online ticketing. The Sahkar Taxi initiative, however, presents an alternative approach aimed at creating fairer, more cooperative-driven economic models for gig workers.
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