In a move set to challenge ride-hailing giants Ola and Uber, Union Home Minister Amit Shah on Thursday announced the launch of Sahkar Taxi—a cooperative-based service aimed at giving drivers full control over their earnings, free from commission cuts by third-party platforms.
Speaking in the Lok Sabha, Shah said the initiative would allow cooperative societies to register taxis, rickshaws, two-wheelers, and four-wheelers without involving intermediaries. The system is modelled on app-based services but built around a cooperative structure that puts drivers at the centre.
“This is not just a slogan. The Ministry of Cooperation has worked relentlessly for three and a half years to implement this on the ground,” the Home Minister said. “In a few months, a major cooperative taxi service will be launched, ensuring direct profit flow to the drivers.”
Shah added that Sahkar Taxi aligns with Prime Minister Narendra Modi's broader vision of 'Sahkar Se Samriddhi' (Prosperity through Cooperation), positioning the move as part of a larger effort to reform gig economy models.
The announcement comes at a time when Ola and Uber are under increasing scrutiny over pricing practices. The Central Consumer Protection Authority (CCPA) recently sent notices to both companies after reports emerged suggesting fare discrepancies based on the user's phone type—Android vs iPhone.
Ola denied the charges, stating: “We have a uniform pricing structure for all our customers and do not differentiate based on the operating system of the user’s cellphone for identical rides.”
Uber echoed the denial. “We do not set prices based on a rider’s phone manufacturer. We look forward to working with the CCPA to resolve any misunderstanding,” a company spokesperson said.
The controversy erupted in December 2024 when a viral post on X showed two phones quoting different fares for the same Uber ride.
Consumer Affairs Minister Pralhad Joshi later weighed in, calling the issue an “unfair trade practice.” He said the government would expand its investigation to pricing practices in sectors like food delivery and online ticketing.