On March 27, 2025, Union Home Minister Amit Shah announced the launch of Sahkar Taxi, a revolutionary cooperative-based ride-hailing service set to transform the transportation industry in India. Unlike popular platforms like Ola and Uber, Sahkar Taxi promises to empower drivers by eliminating intermediaries and ensuring that profits go directly to those behind the wheel. This initiative, unveiled in Parliament, aligns with Prime Minister Narendra Modi’s vision of Sahkar Se Samriddhi (Prosperity through Cooperation). In this article, we’ll dive into what Sahkar Taxi is, how it works, and why it’s creating buzz across the nation.
What is Sahkar Taxi?
Sahkar Taxi is an app-based taxi service designed to compete with private ride-hailing giants like Ola, Uber, and Rapido. Announced by Home Minister Amit Shah, this cooperative-run platform will allow drivers of two-wheelers, auto-rickshaws, and four-wheelers to register and operate without the burden of commission cuts. The key highlight? All earnings will flow directly to the drivers, making it a driver-centric alternative to existing models.
This initiative is part of a broader push by the Ministry of Cooperation to strengthen the cooperative sector in India. Amit Shah emphasized that Sahkar Taxi isn’t just a slogan—it’s a mission backed by over three years of groundwork, set to roll out in the coming months.
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Why Did Amit Shah Launch Sahkar Taxi?
The launch of Sahkar Taxi comes when private ride-hailing platforms like Ola & Uber face scrutiny for differential pricing and high commission rates (20-30%) that eat into drivers’ earnings. This created a need for a fairer alternative. During his parliamentary address, Amit Shah highlighted the need to disrupt the monopoly of big corporations and empower grassroots workers. By introducing a cooperative model, the government aims to:
- Ensure fair earnings for drivers by removing intermediaries.
- Provide commuters with an affordable and reliable alternative to Ola and Uber.
- Promote the cooperative sector as a sustainable economic model.
This move has been welcomed by organizations like the Telangana Gig and Platform Workers’ Union (TGPWU), who see it as a step toward financial independence for drivers.
How Will Sahkar Taxi Work?
While specific details about the app and rollout timeline are yet to be revealed, Home Minister Amit Shah shared some key insights:
- Vehicle Registration: The platform will register two-wheeler taxis, auto-rickshaws, and four-wheeler taxis nationwide.
- No Commission Cuts: Unlike Ola and Uber, which take a significant percentage of each ride’s fare, Sehkar Taxi ensures drivers keep 100% of their profits.
- Cooperative Model: The service will be managed by cooperative societies, ensuring equitable profit distribution and operational transparency.
The government may pilot it in select cities before expanding it across India, following a phased approach typical of such large-scale initiatives.
Benefits of Sehkar Taxi for Drivers and Commuters
For Drivers
- Higher Earnings: With no intermediaries, drivers can take home the full fare amount.
- Financial Independence: The cooperative model gives drivers more control over their work and income.
- Support System: Plans for a cooperative insurance company, also announced by Amit Shah, could provide additional financial security.
For Commuters
- Affordable Rides: By cutting out commission fees, Sehkar Taxi could offer competitive pricing.
- Variety of Options: From bikes to autos to cabs, commuters will have multiple choices.
- Support for Local Economy: Using Sehkar Taxi means supporting a driver-owned cooperative rather than a corporate giant.
Sahkar Taxi vs. Ola and Uber: What’s the Difference?
| Feature | Sahkar Taxi | Ola / Uber |
| Ownership | Cooperative Run | Private companies |
| Profit Sharing | 100% to drivers (No Commission) | Commission-based |
| Vehicle Types | Bikes, Autos, Cars | Bikes, Autos, Cars |
| Objectives | Driver Empowerment | Corporate Profit |
This cooperative approach sets Sahkar Taxi apart, positioning it as a socially responsible alternative in the ride-hailing space.
FAQs
1. When Will the Sahkar Taxi Be Launched?
While Amit Shah announced the initiative on March 27, 2025, he mentioned it would launch “in a few months.” An exact date hasn’t been specified, but updates are expected soon.
2. How Can Drivers Register for Sahkar Taxi?
Details about the registration process are yet to be released. Drivers will likely need to join a cooperative society and sign up via the Sahkar Taxi app once it’s available.
3. Will Sahkar Taxi Be Cheaper Than Ola and Uber?
By eliminating commission fees, Sahkar Taxi has the potential to offer lower fares. However, pricing will depend on operational costs and market competition.
4. Which Cities Will Get Sahkar Taxi First?
The government hasn’t confirmed the initial rollout locations. A pilot phase in major cities like Delhi, Mumbai, or Hyderabad could be a logical starting point.
5. Is Sahkar Taxi Government-Run?
No, Amit Shah clarified that Sahkar Taxi will be operated by cooperative organizations, not the government directly, ensuring a community-driven approach.
Why It Matters for India’s Future?
The launch of Sahkar Taxi by Home Minister Amit Shah signals a shift toward empowering gig workers and challenging corporate dominance in the ride-hailing industry. It’s not just about transportation—it’s about creating a sustainable model where drivers thrive, and commuters benefit from fair pricing. As this initiative takes shape, it could inspire similar cooperative ventures in other sectors, aligning with the Indian government’s cooperative-focused vision.
This announcement must have set the corporate players buzzing, with the government looking to compete against them. However, we are yet to hear anything from the corporate giants.
If you remember, the Indian government has already launched a similar program, ONDC, to curb online food delivery like Swiggy and Zomato.
Stay tuned to ReviewHub.in for the latest updates on Sahkar Taxi, including its launch date, app details, and real-world impact. Will it be a game-changer for the Indian Taxi service industry? What are your thoughts on this driver-first taxi service? Let us know in the comments below!
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