Bharat Taxi's cooperative promise meets India's tough mobility market

Bharat Taxi's cooperative, zero-commission model challenges ride-hailing incumbents, but its long-term viability and regulatory neutrality will be key to fair competition

Starting from the discount-fuelled rise of Ola and Uber in the early 2010s, app-based mobility has become essential for urban India. The sector is characterised by a few dominant platforms, frequent driver protests, and constant tension between affordability for users and viability for drivers. In this market, the launch of Bharat Taxi, a cooperative, driver-owned platform, adds competition to the ride-hailing market, which is, in principle, a positive development. It expands consumer choice in a market that has long been shaped by a near duopoly. Bharat Taxi’s distinguishing feature is its cooperative model. It promises a zero-commission structure and surge-free pricing where drivers are not merely partners but members and co-owners. Thus, it promises to direct all profits to drivers. If implemented credibly, this could benefit both drivers and passengers. Drivers stand to gain from higher take-home earnings, a greater sense of ownership, and welfare-linked support such as retirement savings, and accident and health insurance. Users, meanwhile, may benefit from more predictable fares, fewer hidden charges, and a platform whose incentives are not solely driven by shareholder returns. 

Importantly, Bharat Taxi enters a market that is already shifting away from the old commission-heavy model. Rapido pioneered the move in 2023 by transitioning from per-ride commission to a subscription-based structure, allowing drivers to retain the full fare in exchange for a small daily or monthly fee. This offered drivers cost predictability and reduced resentment around commission, which sometimes reached 30-35 per cent. The pressure created by Rapido’s model, along with smaller experiments like Namma Yatri, pushed larger incumbents to respond. Competitive pressure is forcing business-model innovation so that platforms can no longer ignore driver dissatisfaction. 

But it is not clear whether a zero-commission model can be sustainable in the long term. With a flat fee, the platform loses the incentive to boost ride volumes or pricing. It essentially decouples their revenue from market demand, limiting long-term scalability unless they find other ways to monetise their ecosystem. The entry of Bharat Taxi raises another critical policy concern. The idea of a cooperative model is welcome; but any kind of government support is not. The line between enabling a cooperative and the state becoming an interested party is thin. Private players may fear uneven enforcement, preferential access, or regulatory asymmetry. In a sector that requires constant technological investment and operational discipline, state backing can weaken market incentives rather than strengthen them. 

In such cases, the Competition Commission of India must remain vigilant. If aggressive undercutting, implicit subsidies, or dominance by any player begins to undermine fair competition, regulatory scrutiny will be necessary. The goal should be a level playing field where cooperative and private models compete on merit. Thus, Bharat Taxi can strengthen India’s mobility ecosystem by widening competition and experimenting with driver-centric ownership.