The Indian government is all set to launch a cooperative-based taxi service called “Sahkar Taxi. The initiative is an attempt to challenge the dominance of major ride-hailing services like Ola and Uber. The new scheme aims to provide an easy alternative for the passengers against these popular riding platforms.
This follows increasing scrutiny over pricing issues and commission practices against these apps. The recent move also aligns with the Indian government’s broader vision of empowering grassroots workers and taxi drivers. This will ensure that the taxi drivers receive a fair distribution of the shares and the profits.
HM Amit Shah unveils the plan
The announcement of the scheme was made by Union Home Minister Amit Shah in the Parliament. Shah highlighted that under ‘Sahkar Taxi’ two-wheeler taxis, rickshaws, and four-wheeler vehicles will be registered. These registrations will be made under cooperative societies organizations.
He said, “In the coming months, we will establish a large-scale cooperative taxi service modelled after Uber and Ola. This is the model we are bringing to life”.
This method of registration will allow the drivers to operate without middlemen. This will ensure that they receive all their earnings without any commission cuts, unlike private apps like Ola, Uber. The government aims to provide a transparent method and fair pricing model. The new scheme will also promote the key vision of Prime Minister Narendra Modi, the concept of “Sahkar Se Samriddhi” i.e Prosperity through Cooperation.
How ‘Sahkar Taxi’ Will Operate?
The Sahkar taxi service will be managed by local cooperatives rather than private companies. This model will benefit drivers directly, as they will register their vehicles be it two-wheelers, rickshaws, or cars without relying on any intermediaries. Once the middleman amount is cut off, all profits from the rides will go directly to the drivers. The pricing structure will also be transparent and standardized, ensuring that riders are charged fairly.
Amit Shah emphasized that this initiative is a step towards empowering India’s hardworking taxi drivers and other workers. “For too long, private companies have profited at the expense of those doing the real work. We are putting an end to this exploitation and ensuring that profits stay where they belong with the drivers,” he said.
Controversy in the Ride-Hailing Industry
The government’s recent move comes at a time when Ola and Uber are under the radar for their pricing practices. Recently notices were issued to both the companies by the Central Consumer Protection Authority (CCPA). This comes after reports surfaced alleging that fares varied based on whether a customer used an iPhone or an Android device.
The claims sparked outrage, with many accusing the companies of unfair pricing strategies. Consumer Affairs Minister Pralhad Joshi condemned the practices, calling them “unfair trade practices” and assuring that the government would broaden its investigation into other sectors, including food delivery and online ticketing services, to protect consumers from exploitative pricing.
Ola, Uber reject allegations
Meanwhile, Ola and Uber both have denied the allegations. They claim that they have a uniform pricing system for all users, regardless of any mobile device they use. However, government-backed cooperative taxi service is not new in India.
Previously the West-Bengal government launched “Yatri Sathi,” a similar model that offers affordable fares and driver benefits. The initiative Yatri Sathi has now been expanded to other areas like Siliguri and Asansol. Similarly, Karnataka’s Namma Yatri app follows a similar approach. This app also ensures that all profits go directly to the drivers, while offering a range of transportation options.
