The Indian government is gearing up to introduce a cooperative-based taxi service called “Sahkar Taxi” nationwide, providing an alternative to dominant ride-hailing giants like Ola and Uber. The move comes as India’s taxi market is projected to witness significant growth in the coming years.
“In the coming months, on the cooperative basis, we are going to launch a government cooperative sarkar taxi service like Ola and Uber. The service will register two-wheeler taxis, rickshaws, as well as four-wheeler taxis. The profits from this service will not go to any big industrialist but will go solely to the drivers of the vehicles,” the Union Cooperation Minister – Amit Shah stated.
This initiative places the government in direct competition with established ride-sharing platforms such as Uber, Ola, and Rapido, as well as other emerging players in the sector.
Challenges Facing India’s Ride-Hailing Industry:
While the plan aims to challenge corporate dominance, skeptics warn that government intervention in the ride-hailing industry could lead to bureaucratic inefficiencies, political influence, and potential mismanagement—issues that have plagued several public-sector projects in the past.
Moreover, with India’s taxi market valued at $23.40 billion and projected to reach $44.18 billion by 2030, questions arise over whether the government should compete with private businesses or create policies that ensure a fair market for all players.
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A similar cooperative-based model has already been implemented in West Bengal, where the Mamata Banerjee-led government launched “Yatri Sathi” as an alternative to private ride-hailing services.
Is ‘Sahkar Taxi’ a revolutionary step toward driver empowerment, or is it a political power play disguised as reform? Only time will tell.