How Modi government's 'Sahkar Taxi' will disrupt ride-hailing industry
What's the story
The Indian government is all set to launch a new taxi service called "Sahkar Taxi."
The cooperative-based service will be available across the country, serving as an alternative to popular ride-hailing services such as Ola and Uber.
Union Minister Amit Shah announced the plan in Parliament on Wednesday, saying Sahkar Taxi will register two-wheeler taxis, rickshaws, and four-wheeler taxis.
The USP? All profits will go to the drivers.
Service details
A cooperative-based ride-hailing service
Shah stressed that the profits from Sahkar Taxi won't be diverted to big corporates but will only benefit the drivers.
He said, "In the coming months, on a cooperative basis, we are going to launch a government cooperative sarkar taxi service like Ola and Uber."
The move is likely to empower drivers by giving them direct profit without middlemen taking a cut from their earnings.
Government initiative
'Sahkar Taxi' aligns with PM Modi's vision
Further, Shah said that the launch of Sahkar Taxi is in line with Prime Minister Narendra Modi's vision of Sahkar Se Samriddhi (Prosperity through Cooperation).
He said, "This is not just a slogan. The Ministry of Cooperation has worked relentlessly for three and a half years to implement this on the ground."
"In a few months, a major cooperative taxi service will be launched, ensuring direct profit flow to the drivers."
Market competition
Competing with existing ride-hailing platforms
With Sahkar Taxi, the government will be competing against existing ride-hailing platforms like Uber, Ola, and Rapido, as well as new entrants like BluSmart.
This is also in line with a broader trend seen in West Bengal and Karnataka where cooperative-based taxi services have been successfully introduced.
These include Yatri Sathi in West Bengal and Namma Yathri in Karnataka, both of which ensure all profits go directly to the drivers.