Shock to Uber, Ola, Rapido: Sahakar Taxi from Government to Curb Private Cab Fares Overpricing

The Indian government is set to introduce ‘Sahakar Taxi’, a new ride-hailing service designed to compete with Ola, Uber, Rapido, and BluSmart. Announced by Union Minister Amit Shah in Parliament, this initiative aligns with Prime Minister Narendra Modi’s ‘Sahakar Se Samriddhi’ (Prosperity through Cooperation) policy. Experts believe this move will intensify competition in the ride-hailing sector, challenging private aggregators.

Sahakar Taxi: A Government-Backed Alternative

Minister Amit Shah emphasized that India’s rapidly growing population and urban transport needs have led to a highly competitive taxi market. The Sahakar Taxi scheme will introduce two-wheeler taxis, auto-rickshaws, and four-wheeler cabs under a cooperative framework. Unlike private cab services, where profits largely benefit corporate entities, this government-backed service aims to directly distribute earnings to the drivers, ensuring fairer wages and better economic stability.

Existing Models in West Bengal and Karnataka

Several states have already experimented with similar models. The Trinamool Congress (TMC) government in West Bengal, under Mamata Banerjee’s leadership, launched the ‘Yatri Sathi’ taxi service. Initially rolled out in Kolkata, the service has since expanded to Siliguri, Asansol, and Durgapur. Yatri Sathi is popular for its affordable fares, multilingual support (Bengali and English), and 24/7 customer service.

In Karnataka, the private ‘Namma Yatri’ app follows a cooperative model, ensuring all profits go directly to drivers, rather than being retained by corporate owners. The central government envisions Sahakar Taxi as a similar initiative on a national scale.

Addressing Concerns Over Private Ride-Hailing Companies

Private ride-hailing companies such as Ola and Uber have faced criticism over inconsistent pricing policies, where fares fluctuate based on user devices, peak hours, and demand surges. Many consumers have raised concerns about opaque pricing strategies. The Central Consumer Protection Authority (CCPA) has even issued notices to these companies, demanding transparency and fair pricing mechanisms.

The government’s Sahakar Taxi initiative aims to provide a fairer, more transparent, and driver-friendly alternative to private aggregators. By introducing a cooperative business model, the initiative seeks to promote fair competition, protect consumer interests, and improve earnings for drivers, ultimately reshaping India’s ride-hailing landscape.