The cab-hailing landscape in India is set to undergo a massive change today as Bharat Taxi gears up for an official launch in New Delhi. Backed by the Government of India, Bharat Taxi is a cab service based on a cooperative model.
Union Minister of Cooperation Amit Shah will launch the app today, February 5.
In a post on ‘X’, Shah announced that Bharat Taxi — the first taxi service in the cooperative sector — will be launched today.
“How many people can come together through cooperation, pooling small amounts of capital to make a big beginning —‘Bharat Taxi’ is an example of this. Today is a very important day for taxi driver sisters and brothers. The launch of ‘Bharat Taxi,’ the first taxi service in the cooperative sector started by them, will take place in New Delhi", the minister wrote.
“Through ‘Bharat Taxi,’ the driver sisters and brothers will not only be able to earn more profit but will also become its owners with dignity. I am eager to participate in this program today", he added.
What Is Bharat Taxi?
Based on a cooperative model, Bharat Taxi is a ride hailing app, which is backed by the Union Government. According to an official statement from the Ministry of Cooperation, the service will place drivers “at the centre of ownership, operations, and value creation".
The government argues that the arrangement will shield the drivers against exploitation by private players.
However, it might be noted that the initiave is not directly by the Government of India. Rather, it is run by Sahakar Taxi Cooperative Limited, which has been backed by key people who previously worked at Amul.
How Does Bharat Taxi Work?
Each driver, or ‘Sarathi’, holds five shares in the cooperative. Unlike private aggregators, no commission will be deducted from each fare — an effort to address longstanding complaints by drivers about high commission rates.
Instead, the driver will require to pay a fixed daily fee of Rs 30 to access the app.
For riders, experts have been estimating that the fares will be upto 30 per cent cheaper than private players.
Unlike private aggregators, Bharat Taxi’s zero-commission model passes the benefit directly to passengers, enabling access to lower-fare cab options.
