Cooperative taxi platform aims to offer fair pricing and social security

Backed by eight major cooperatives including Amul and IFFCO, Sahakar Taxi will launch in December 2025, starting with Delhi, Gujarat and Maharashtra under a driver-owned model

India' s first app based taxi service under the cooperative model, aimed at taking on Uber and Ola, called the Sahakar Taxi Cooperative, has been registered under the Multi-State Co-Operative Societies Act with an authorised share capital of ₹300 crore, senior officials said. 

The taxi service, which is initially expected to start operations in Delhi, Gujarat, and Maharashtra around December, will gradually expand its footprint across the country.  A few months ago, Union Minister of Cooperation Amit Shah announced the intention to launch a taxi ride-hailing service in the cooperative sector called Sahakar Taxi. The platform would also allow registration of two-wheelers, rickshaws, taxis, and four-wheelers.  The Sahakar Taxi Cooperative has been promoted by eight major cooperatives: the National Cooperative Development Corporation (NCDC), Anand Milk Union, National Agricultural Cooperative Marketing Federation of India (Nafed), National Bank for Agriculture and Rural Development (Nabard), Indian Farmers Fertiliser Cooperative (IFFCO), Krishak Bharati Cooperative (KRIBHCO), National Dairy Development Board (NDDB), and National Co-operative Exports.  Each promoter has already committed ₹10 crore, amounting to around ₹80 crore in initial capital for the taxi cooperative.  Around 400 drivers are expected to be onboarded initially. Each will be allowed to purchase five shares of ₹100 each to become members of the cooperative six months after joining.  “Unlike Uber and Ola, this taxi service will operate on three major principles: first, ensuring fair pricing for both drivers and passengers (concepts like surge pricing will not be permitted); second, redistribution of profits to drivers; and third, provision of social security for drivers,” a senior official directly involved in the project said.  He added that the cooperative taxi service will not operate for profit, and all earnings will be redistributed among the drivers, with a portion allocated for their social security benefits.  “We have already initiated discussions with technology partners to develop a ride-sharing application for the service,” the official explained.  An interim board has been formed to oversee initial operations. Rohit Gupta, deputy managing director of NCDC, is serving as chairman of the board. Other key members include V Sridhar (NDDB), Tarun Handa (Nafed), Naveen Kumar (Nabard), Santosh Shukla (IFFCO), and L P Godwin (KRIBHCO), among others.  The Sahakar Taxi Cooperative is also working to collaborate with leading educational institutions, such as the International Institute of Information Technology, Bengaluru, for technological development, operational systems, and digital integration to match industry standards.  To generate employment opportunities in Tier-II and Tier-III cities, the Sahakar Taxi Cooperative plans to set up call centres in smaller towns and cities — unlike major ride-hailing apps, which typically have back offices in metro areas, the official said. 

 

Road ahead

• The taxi registered with an authorised share capital of Rs 300 crore 
• Expected to start operations from Delhi, Gujarat, and Maharashtra around December 
• Nearly 400 drivers are expected to be initially onboarded in the new  taxi service  
• It is expected to create employment opportunities  in Tier-II and Tier-III Cities