India to launch 'Sahkar Taxi' as Cooperative-based alternative to Ola & Uber

New Delhi, India (Urban Transport News): The Indian government is set to disrupt the ride-hailing industry with the launch of "Sahkar Taxi," a cooperative-based taxi service aimed at providing a driver-first alternative to platforms like Ola, Uber, and Rapido.

Announced by Union Minister Amit Shah in Parliament, the upcoming government-backed taxi service will register two-wheeler taxis, auto-rickshaws, and four-wheeler taxis, ensuring that all profits go directly to drivers, rather than large corporate entities.

A Game-Changer for India’s Taxi Market

With India’s ride-hailing sector projected to grow from $23.40 billion to $44.18 billion by 2030 (Mordor Intelligence), the entry of Sahkar Taxi will intensify competition in an industry where supply often lags behind rising demand.

Ride-hailing companies in India face a vehicle shortage due to high asset ownership costs, as previously stated by Prabhjeet Singh, Uber India & South Asia President. A cooperative model like Sahkar Taxi could offer drivers greater earning potential while addressing this supply gap.

Existing Models & Market Competition

Sahkar Taxi follows the footsteps of successful cooperative-based ride services such as:

• Yatri Sathi (West Bengal) – A state-backed app that offers quick dispatch, local language support, and 24/7 customer assistance.

• Namma Yatri (Karnataka) – A private initiative ensuring that 100% of profits go to drivers, reducing reliance on corporate commissions.

What’s Next?

With its government backing, Sahkar Taxi could become a major disruptor in India's mobility sector, ensuring fairer earnings for drivers while increasing affordable transport options for passengers.