The Centre has introduced “Bharat Taxi,” India’s first cooperative taxi service, aiming to challenge giants like Ola and Uber. Created by the Union Ministry of Cooperation and the National e-Governance Division, this service offers zero commissions for its driver members, transparent fares, and a government-regulated alternative.
The pilot will kick off in November 2025 in Delhi with 650 driver-owners. The goal is to increase to 5,000 cabs in 20 cities by 2026 and reach 100,000 by 2030. This initiative aims to empower drivers, tackle issues like surge pricing and cancellations, and promote prosperity through cooperation.
Bharat Taxi, which launched in October 2025, operates under the Sahakar Taxi Cooperative Limited. This new entity is backed by a capital of ₹300 crore and managed by a council led by Jayen Mehta, the Managing Director of Amul. Every registered driver becomes a part-owner, gaining a say in the business.
What sets Bharat Taxi apart? Unlike Ola and Uber, it does not charge commissions. Instead, drivers pay a small membership fee and keep all their earnings. This model not only boosts driver income but also gives them a voice in key decisions about fares and fleet management.
The Bharat Taxi app includes features similar to other ride-hailing services, like real-time tracking, SOS support, and payment options. The government’s involvement aims to prevent unfair practices like surge pricing, common in the private sector.
Cooperatives, like Bharat Taxi, are member-owned businesses that operate democratically, sharing profits among contributors. India has a rich history of successful cooperatives, such as Amul and IFFCO, which uplift communities while minimizing the role of profit-driven middlemen. Supported by organizations like NCDC and NABARD, the project aligns with the “Sahkar se Samriddhi” vision endorsed by leaders like PM Narendra Modi.
For commuters, Bharat Taxi promises fair, stable fares and reliable service. For drivers, it means better working conditions and financial stability, with special attention to empowering women in the workforce. This new model could prompt private companies to reevaluate their strategies related to commissions and passenger treatment.
Experts in urban mobility suggest that cooperative models could reshape the gig economy in India. Bharat Taxi represents a significant shift toward fairer, community-focused transport solutions. To be successful, it will need to remain adaptable and ensure that both drivers and passengers have their voices heard.
Here are five key questions about Bharat Taxi:
1. What is Bharat Taxi and who launched it?
Bharat Taxi is India’s first cooperative taxi service, launched by the Ministry of Cooperation, with backing from major cooperatives like Amul and IFFCO. It is run by the Sahakar Taxi Cooperative Limited.
2. How does Bharat Taxi differ from Ola and Uber?
Bharat Taxi operates on a cooperative model where drivers are part-owners, paying only a minimal fee instead of high commissions. This allows them to keep their full earnings and ensures fairer treatment.
3. Where will Bharat Taxi operate initially?
The pilot will begin in Delhi, expanding gradually to other major cities over the next few years, aiming for a nationwide rollout by 2030.
4. How will this benefit drivers and commuters?
Drivers enjoy higher earnings and democratic governance, while commuters get safer and more affordable transport options, complete with government oversight for added protection.
5. What impact could this have on India’s ride-hailing market?
Bharat Taxi could democratize urban transportation, challenging private monopolies and promoting fair competition that benefits both drivers and passengers.
