Taxi companies like Ola and Uber are about to see some serious competition. A new cooperative taxi service, called Bharat, is set to launch in India by the end of this year. This initiative comes with a strong financial backing of Rs 300 crore, and over 200 drivers from four states have already signed up.
The Multi-State Sahakari Taxi Cooperative Ltd, officially registered on June 6 this year, brings together eight major cooperatives, including the National Cooperative Development Corporation (NCDC) and the Indian Farmers Fertilizer Cooperative Ltd (IFFCO).
India’s Home Minister, Amit Shah, hinted last month at the possibility of a broader cooperative taxi service by the end of 2025 during the rollout of a new policy for cooperatives. This adds weight to the growing trend of cooperative models aiming to empower local economies.
According to Rohit Gupta, Deputy Managing Director of the NCDC, the goal is to ensure that drivers earn better returns while providing quality, safe, and affordable rides for passengers. He emphasized, “The key objective is to ensure better returns to drivers and provide quality, safe and affordable services to passengers.”
Importantly, this venture will be completely led by cooperatives, without any government involvement. Founders include several key organizations like Krishak Bharati Cooperative Ltd and the National Dairy Development Board.
This cooperative model in India isn’t just about taxis; it reflects a growing trend where cooperatives seek to compete with traditional business models by putting profits back into the community. Research shows that cooperative businesses often report higher levels of job satisfaction and stability for their workers. A 2020 report from the International Cooperative Alliance stated that cooperatives contribute significantly to job creation, which could be a game changer for many drivers looking for better working conditions.
The rise of this taxi service holds promise not only for drivers but also for passengers who may benefit from improved service options and competitive pricing. With this model, the future of taxi services in India could be more community-focused and less dependent on corporate giants.
