Government-Backed Bharat Taxi Launches Cooperative Model, Challenges Uber and Ola in India
reuters
India has introduced a new government-backed ride-hailing platform, Bharat Taxi, designed to operate on a cooperative model that shares profits with drivers and charges no commissions. The initiative directly challenges global giant Uber and domestic player Ola in one of the world’s fastest-growing mobility markets.
Home and Cooperation Minister Amit Shah announced the service while addressing drivers, positioning Bharat Taxi as an alternative that prioritises driver earnings. The move follows rising complaints from drivers about high commissions, low fares, and platform fees on existing ride-hailing apps.
Under the cooperative model, drivers can become shareholders by paying ₹500 and will receive a share of profits after three years. Officials said more than 250,000 drivers have already joined the platform. The app currently operates in select states, including New Delhi, with nationwide expansion planned within two years. In addition to cabs, the platform allows booking autorickshaws, scooters, and motorcycles, mirroring services offered by competitors.
Uber stated that India’s mobility ecosystem remains competitive and evolving, noting that competition benefits riders and drivers. Ola has not commented.
India’s ride-hailing market, valued at about $2 billion and projected to reach $11 billion by 2033, could see disruption if the cooperative model gains scale.
Bharat Taxi signals a policy shift toward driver-centric platforms and increased competition in urban mobility.