India's 'Bharat Taxi' To Challenge Ola-Uber Duopoly
By Anushka Singh
India’s ride-hailing landscape is on the brink of transformation with the upcoming launch of Bharat Taxi — the nation’s first government-backed, cooperative taxi service.
Set to begin its pilot phase in New Delhi next month with around 650 driver-owned vehicles, the initiative marks the government’s direct entry into a space long dominated by private players Ola and Uber.
 |
| For representational purpose only |
Developed under the Union Ministry of Cooperation and the National e-Governance Division (NeGD), Bharat Taxi has been conceived as a “citizen-first” platform, designed to address persistent issues plaguing both commuters and drivers, from unpredictable surge pricing and high commissions to inconsistent service quality.
The service will be operated by the newly formed Sahakar Taxi Cooperative Limited, a driver-owned body envisioned to give the workforce a collective voice and equitable returns.
Built on a cooperative model, Bharat Taxi introduces a structure that promises to upend the existing system. Drivers, or “Saarthis” as they will be respectfully known, will retain their entire fare amount after paying only a nominal membership fee, a sharp contrast to the 20 to 25 per cent commissions typically charged by private aggregators.
The fare system will follow transparent, rules-based pricing, supervised by the government to ensure affordability and to completely eliminate surge pricing. Drivers will no longer remain at the mercy of opaque algorithms or arbitrary bans but will instead function as co-owners and stakeholders in the cooperative, entitled to profit-sharing and participation in policy decisions.
The initiative also integrates deeply with India’s digital governance infrastructure, leveraging platforms like DigiLocker, UMANG, and UPI to ensure secure and seamless services. With government supervision ensuring accountability and grievance redressal, Bharat Taxi introduces a layer of trust that has often been missing from corporate-driven services.
For drivers, the promise of keeping their full earnings could translate into a 25 to 30 per cent increase in income, while for commuters, the assurance of predictable, fair fares without sudden price spikes brings a measure of stability to daily travel.
Bharat Taxi is more than just a new player in the market, it represents a fundamental shift in how mobility is structured in India. Its zero-commission model is expected to exert substantial pressure on existing aggregators, compelling them to revisit their commission structures and pricing policies.
By offering drivers cooperative-based social security and collective decision-making powers, the initiative also takes a significant step toward formalising India’s sprawling gig economy, often criticised for its lack of protection and transparency.
Following its pilot run in Delhi, Bharat Taxi is expected to expand rapidly, with plans to reach 20 major cities including Mumbai, Pune, Lucknow, and Jaipur by December 2025. The government’s long-term vision targets the onboarding of one lakh drivers by 2030, extending the service beyond metropolitan centres into district headquarters and rural areas.
Supported by leading cooperative and financial entities such as NCDC, IFFCO, and Amul, Bharat Taxi is set to mount a formidable challenge to the Ola-Uber duopoly. With its cooperative framework and citizen-first ethos, it aims not merely to compete but to redefine mobility across India — from its bustling cities to its growing towns — with fairness, dignity, and shared prosperity at its core.
To receive regular updates and notifications, follow The Draft News:
