Govt to launch 'Sahkar' taxi to benefit cab drivers: All you need to know

Amit Shah said the profits from this cooperative society will not go to businessmen but directly to the drivers

Union Home and Cooperation Minister Amit Shah on Wednesday, March 26, announced that the government is set to launch 'Sahkar' taxi, a cooperative-run ride-hailing service modelled after Uber and Ola.

 

Speaking during a debate in Lok Sabha, Shah said the initiative is in line with the Prime Minister's slogan "sahkar se samriddhi" (prosperity through cooperation).

 

“In the coming months, we will establish a large-scale cooperative taxi service modelled after Uber and Ola,” he said.

 

Shah further said the profits from this cooperative society will not go to businessmen but directly to the drivers. "This is the model we are bringing to life," he said.

 

The ride-hailing platform will cover two-wheeler taxis, autorickshaws, and four-wheelers.

 

In June 2022, a similar cab-hailing service was announced by the National Tourism and Transport Cooperative Federation, which is an apex Cooperative organization under the central government.

 

Ride-hailing platforms under radar

 

The announcement comes amid ride-hailing giants facing flak, not just from the drivers, but also from consumers alleging differential pricing. On Monday, cab drivers in Hyderabad launched a ‘No AC’ campaign to protest against the low fares offered by ride-hailing platforms such as Ola, Uber, and Rapido.

 

The Telangana Gig and Platform Workers’ Union (TGPWU) said that cab aggregators adopt a uniform fare system—similar to government-mandated prepaid taxi fares—that accounts for fuel costs, vehicle maintenance, and fair compensation for drivers.

 

Earlier this year, the Consumer Protection Authority (CCPA) issued notices to major cab aggregators Ola and Uber following allegations of differential pricing for identical rides based on users' mobile operating systems — Android or iOS.

 

However, both the companies denied allegations of differential pricing based on consumers' smartphone operating system.