RideHailing – Bharat Taxi Launch Signals New Direction for India’s Cab Market

RideHailing- Union Home and Cooperation Minister Amit Shah on Thursday unveiled Bharat Taxi, marking the country’s first government-backed ride-hailing service built on a cooperative ownership structure. The initiative introduces a new approach to app-based transport by positioning drivers as owners rather than contracted service providers, with the stated aim of making urban mobility more affordable and equitable.

A cooperative alternative to existing ride-hailing apps

Bharat Taxi enters a market long dominated by private platforms such as Ola and Uber, but with a distinctly different operating model. Unlike conventional ride-hailing services that charge commissions and apply surge pricing during peak hours, the new platform removes these elements altogether. The government says this structure is intended to protect driver earnings while also offering passengers more predictable fares.

According to an official statement, ride charges on Bharat Taxi could be up to 30 percent lower than those on competing apps. The pricing system is designed to be transparent and regulated, reducing fluctuations that often frustrate both riders and drivers in the current market.

Drivers positioned as stakeholders, not contractors

At the launch event, Shah emphasized the cooperative philosophy behind the platform, using the phrase “Sarathi Hi Malik,” meaning the driver is the owner. Under this framework, drivers—referred to as sarathis—are registered members of the cooperative. This membership grants them a share in ownership as well as participation in profits generated by the platform.

By removing intermediaries and commission-based deductions, the model seeks to ensure that a larger portion of the fare reaches the driver. Officials involved in the project say this could help address long-standing concerns over declining earnings and lack of control faced by drivers on private ride-hailing apps.

Built-in social security measures for drivers

Beyond ownership and pricing, Bharat Taxi also incorporates a range of social security benefits for its driver members. Each registered driver is covered by a personal accident insurance policy of Rs 5 lakh, along with a family health insurance cover of the same amount. The platform also includes options linked to retirement savings, addressing an area often lacking in gig-based employment.

To support drivers operationally, dedicated assistance centres have been set up in major regions, including Delhi. These centres are expected to handle onboarding, grievance redressal, and technical support, reducing drivers’ dependence on app-based customer service alone.

Pilot programmes show early traction

The national rollout follows pilot projects conducted in the Delhi-NCR and Gujarat regions. During this phase, more than three lakh drivers were onboarded, and the platform facilitated thousands of rides each day. Officials say feedback from these pilots helped refine the app’s features, fare mechanisms, and support systems before the broader launch.

The government views these early results as an indication that a cooperative-based model can function at scale, even in a sector known for intense competition and thin margins.

Integration with India’s digital public infrastructure

Bharat Taxi has been integrated with India’s Digital Public Infrastructure to streamline verification and daily operations. Tools such as DigiLocker and UMANG are used to simplify document submission, identity checks, and access to government-linked services. This integration is expected to reduce onboarding time and improve compliance with regulatory requirements.

Officials say the use of existing digital systems also helps maintain data security and transparency, while lowering administrative costs for the platform.

Implications for the broader mobility ecosystem

While it remains to be seen how Bharat Taxi will compete with established private players nationwide, the launch signals a policy-driven effort to reshape the ride-hailing landscape. By combining cooperative ownership, regulated pricing, and social security benefits, the initiative reflects a broader push to formalize and stabilize gig work in India.

As the platform expands beyond its pilot regions, its performance will likely be closely watched by industry stakeholders, policymakers, and driver communities alike.