India’s ride-hailing market is set to see a new experiment with the commercial launch of Bharat Taxi, a cooperative-based taxi platform that places ownership and profit-sharing directly in the hands of drivers, or 'sarathis'. Union minister of home and cooperation Amit Shah formally launched the country’s first cooperative-based taxi service ‘Bharat Taxi’ in New Delhi.
According the Mr Shah within three years, from Kashmir to Kanyakumari and from Dwarka to Kamakhya, the sahakar taxi will become a very big medium for the welfare of our taxi sarathis."The government is not entering the taxi sector; rather, cooperation is entering the taxi sector."
"At present, the wheel of the taxi puts money into someone else’s pocket, but now the earnings from the wheel of the sarathis’ taxis will go into the sarathis’ own pockets," the minister added.
Unlike conventional app-based taxi aggregators that rely on commission-heavy models, Bharat Taxi is structured as a cooperative society in which drivers themselves are the shareholders. The platform does not deduct commissions from fares and transfers customer payments directly and instantly into the sarathi’s bank account.
Under the Bharat Taxi model, drivers contribute a nominal share capital of Rs500 to become co-owners of the cooperative. The platform retains 20% of the overall surplus for operational sustainability, but ownership of that retained capital also rests with the sarathis themselves.
The service supports multiple vehicle categories — four-wheelers, three-wheelers, and two-wheelers — enabling broader participation across urban mobility segments. Fixed platform charges, where applicable, are kept separate from driver earnings, and there are no booking fees, platform fees or hidden deductions from fares.
According to the Union government, the platform’s objective is not capital accumulation but income stability and long-term financial security for drivers, a sharp departure from the venture-backed ride-hailing model that has dominated the sector over the past decade.
Bharat Taxi integrates insurance and social security features directly into its ecosystem. Registered sarathis are eligible for health insurance coverage of up to Rs5 lakh, personal accident insurance, and access to affordable loans and subsidies under existing government schemes for gig workers.
The app includes an SOS alert feature and a multi-layer grievance redressal mechanism, operating through the app, website and a toll-free number. Assistance centres and helplines have been set up initially in Delhi-NCR, with plans to expand nationwide as the service scales.
A key feature is ‘sarathi didi’, a women-focused service designed to enhance safety and employment opportunities. Under this option, women passengers can choose rides operated exclusively by women drivers, particularly on two-wheelers, at affordable fares.
The entry of Bharat Taxi appears to have triggered competitive responses in the ride-hailing space. According to the government, several large private platforms have begun lowering commissions and offering higher incentives to drivers following the cooperative’s rollout, indicating early pressure on existing business models.
Within eight months of pilot operations in Delhi and Gujarat, Bharat Taxi claims to have onboarded more drivers and passengers than many private competitors did in their initial launch phases. The platform aims to expand nationwide within three years.
Bharat Taxi has signed memorandums of understanding (MoU) with multiple public and private institutions, including Delhi traffic police, Delhi Metro Rail Corporation (DMRC), Airports Authority of India (AAI) and State Bank of India (SBI) to enable regulated operations, financing and last-mile connectivity. These partnerships are expected to support airport services, metro feeder routes and priority vehicle financing for driver-owners.
Whether Bharat Taxi can scale sustainably in a market dominated by deep-pocketed private players remains to be seen. But its core proposition — zero commission, direct payouts and driver ownership — addresses long-standing grievances among taxi drivers around income volatility and platform dependence.
If execution matches intent, Bharat Taxi could emerge as a meaningful alternative in India’s crowded mobility market, offering both drivers and passengers a model built less on scale-at-any-cost and more on shared ownership and predictable earnings.
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