Eight Major Cooperative Bodies to Promote ‘Sahkar Taxi’, Set to Challenge Uber and Ola
For the first time in India, an app-based cooperative taxi service is set to be launched, which aims to take on the dominance of private players like Uber and Ola. Registered under the Multi-State Cooperative Societies Act, the ‘Sahkar Taxi Cooperative’ has an authorised share capital of ₹300 crore.
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For the first time in India, an app-based cooperative taxi service is set to be launched, which aims to take on the dominance of private players like Uber and Ola. Registered under the Multi-State Cooperative Societies Act, the ‘Sahkar Taxi Cooperative’ has an authorised share capital of ₹300 crore.
According to sources in the Ministry of Cooperation, Sahkar Taxi will not being run solely for profit. The service will charge passengers reasonable fares, and a significant portion of the earnings will be distributed among the drivers. The model also emphasises social security benefits for the drivers.
Launch in Delhi, Gujarat and Maharashtra
Operations are expected to begin by December this year in Delhi, Gujarat, and Maharashtra, followed by a phased rollout across the country.
A few months ago, Union Cooperation Minister Amit Shah had emphasised the need to expand cooperative institutions into various sectors like taxi services. Sahkar Taxi is a step in that direction. The app-based platform will facilitate the operation of two-wheelers, rickshaws, taxis, and other four-wheelers.
Promoted by Eight Leading Cooperative Institutions
The initiative is being backed by eight major cooperative organisations, including: National Cooperative Development Corporation (NCDC), Amul (Anand Milk Union Limited), NAFED (National Agricultural Cooperative Marketing Federation of India), NABARD (National Bank for Agriculture and Rural Development), IFFCO (Indian Farmers Fertiliser Cooperative), KRIBHCO (Krishak Bharati Cooperative), NDDB (National Dairy Development Board) and NCEL (National Cooperative Exports Limited)
Each promoter has committed ₹10 crore in the initial phase. With the support of such strong cooperatives, Sahkar Taxi is expected to gain a robust start.
An interim board has been constituted to oversee operations, with Rohit Gupta, Deputy Managing Director of NCDC, as its Chairman. Other key members include V. Sridhar (NDDB), Tarun Handa (NAFED), Naveen Kumar (NABARD), Santosh Shukla (IFFCO), and L. P. Godwin (KRIBHCO). Talks are underway with technology partners to develop the mobile application.
Cooperative Spirit at the Core
Unlike private platforms like Uber and Ola, Sahkar Taxi will function on cooperative principles. It will charge reasonable fares, avoid surge pricing, and share profits with drivers, while also providing them social security coverage.
Driver Enrollment Model
In the initial phase, around 400–500 drivers are expected to be onboarded. After six months of service, each driver will have the opportunity to become a member of the cooperative by purchasing five shares worth ₹100 each.
It will be interesting to see how this cooperative initiative challenges well-established brands like Uber and Ola, and how it serves the interests of both passengers and drivers. After the formation of three national-level cooperatives, Sahkar Taxi marks another bold step by the Ministry of Cooperation to expand cooperative ventures in India.
