The ride-hailing cab sector is set for a major shake-up once the government launches Sahkar Taxi, a cooperative-based ride-hailing platform, which aims at empowering drivers with direct control over their earnings and operations.
Home and cooperation minister Amit Shah had announced the initiative last week, highlighting its goal to create a fairer alternative to existing ride-hailing giants like Uber, Ola, and Rapido.
Sahkar Taxi will register two-wheeler, rickshaw, and four-wheeler taxis under a multi-state cooperative society (MSCS). Unlike traditional platforms that take commissions of 20%-40% or charge subscription fees, this cooperative model will allow drivers to retain their full earnings. The government has emphasised that the drivers will run the cooperative, rather than merely working for it.
Officials told Fe that the society is expected to be registered with the Central Registrar of Cooperative Societies within the first quarter of FY26. The cooperative’s initial capital will be raised through share capital contributions from its driver-members, each purchasing shares to become stakeholders in the business.
Officials said that the initiative will be backed by the National Cooperative Development Corporation (NCDC), which will assist in planning, promotion, and financial support. This will include funding for setting up the platform, developing the mobile app, and providing loans to drivers for vehicle purchases.
The Sahkar Taxi app will function like existing ride-hailing services, allowing users to book rides and deliveries via smartphones, officials said. However, the key difference will be that drivers will receive their full fare without any deductions. Officials said this model will not only improve driver incomes but also offer more affordable and stable pricing for customers.
While similar models exist at the state level, like West Bengal’s Yatri Sathi and Karnataka’s Namma Yatri, Sahkar Taxi will be the first cooperative to operate at a national scale.
West Bengal’s Yatri Sathi, managed by the state’s IT & ITeS department, offers commission-free services to over 70,000 drivers through a subscription-based model. Karnataka’s Namma Yatri, built by Bengaluru’s Auto Rickshaw Drivers’ Union in collaboration with Juspay Technologies and ONDC, follows a similar structure and has expanded to multiple cities.
At present, Uber and Ola dominate over 50% of the ride-hailing market. The government hopes that Sahkar Taxi will provide a viable alternative that ensures better earnings for drivers while delivering fair pricing for customers.