Sahkar Taxi : The Indian government took a bold step on Wednesday, March 26, when Union Home and Cooperation Minister Amit Shah declared that the government would introduce “Sahkar” cab, a ride-hailing service that is run cooperatively and is modeled after Ola and Uber.
Shah stated the program is consistent with the Prime Minister’s motto, “sahkar se samriddhi” (prosperity through collaboration), during a Lok Sabha discussion.
“We plan to launch a large-scale cooperative taxi service in the upcoming months, modeled after Ola and Uber,” he stated.
Shah added that the drivers themselves would receive the income from this cooperative society rather than businesspeople. “This is the model we are bringing to life,” he stated.
An apex cooperative organization under the federal government, the National Tourism and Transport Cooperative Federation, launched a comparable cab-hailing service in June 2022.
The announcement comes as ride-hailing behemoths are under fire from both drivers and customers who claim that they are being charged differently. In response to the low charges provided by ride-hailing services like Ola, Uber, and Rapido, Hyderabad taxi drivers started a “No AC” campaign on Monday.
According to the Telangana Gig and Platform Workers’ Union (TGPWU), taxi aggregators use a standard fee structure that covers fuel expenses, vehicle upkeep, and equitable driver remuneration, much like government-mandated prepaid taxi fares.
Sahkar Taxi: An initiative to empower drivers
According to the government, the future service will be run under a cooperative model, guaranteeing that drivers are treated as stakeholders rather than merely service suppliers. “This is more than simply a catchphrase. For the past three and a half years, the Ministry of Cooperation has been working tirelessly to put this into practice. A significant cooperative taxi service would be introduced in a few months, guaranteeing drivers a direct profit flow, the Home Minister stated.
The statement coincides with increased scrutiny of Ola and Uber, two significant ride-hailing services, due to claims of unfair pricing. Both businesses received notices from the Central Consumer Protection Authority (CCPA) recently when it was revealed that transportation costs differed depending on whether a customer was making a reservation using an Android or iPhone.
How Sahkar Taxi Will Work
How Sahkar Taxi aims to differentiate itself from traditional platforms like Ola and Uber by operating through cooperative societies rather than corporate firms. Here is how it aims to be unique:
- No Middlemen: Drivers of all kinds of vehicles, including taxis, rickshaws, two-wheelers, and four-wheelers, can register their vehicles directly.
- Full Earnings: Unlike other platforms that take commissions, the driver will get 100% of the fare.
- Fair Pricing: The service will employ an open pricing approach to steer clear of spike pricing and hidden expenses.
Operational Framework
Let’s break down the operational framework of the taxi. It is designed in a way that all the different types of vehicles are required to be registered; be it 2 wheeler taxis, rickshaws or cabs. The main aim of such policy is to retain 100% of their earnings by operating them through cooperative societies rather than corporate firms. The model provides 100% earning retention by the drivers, also igniting a sense of ownership and participation among the drivers.
Addressing Industry Challenges
The recent events have raised a concern among the general public regarding the pricing discrepancies by the major ride-hailing platforms. Ola and Uber have gone under severe scrutiny as mentioned previously. Although both the companies have denied the allegations but the problem still exists. Sahkar Taxi can be a ray of hope for the general public due it transparent procedure. It is one way of solving an existing issue and restoring the faith of the public in such platforms.
Comparative Initiatives
This is not the first time the government has tried to dive into this section, the Yatri Sathi services, which was launched by the government of West Bengal. Launched by the Mamata Banerjee administration, it has been a successful campaign which was not just limited to Kolkata, it expanded to other cities like Durgapur, Siliguri, and Asansol. Another attempt was Namma Yatri, which was a privately owned service. The app offered commission-free services to drivers, focusing on fair earnings and transparent pricing. With such success stories, for these services, we can expect something that will change the game for Ola and Uber forever.
Implications for the Ride-Hailing Industry
The launch signifies a total shift towards cooperative-based models in the transportation sector. For drivers, this looks promising as it aims to provide them with income stability and autonomy. On the other hand, for consumers, it provides a transparent and affordable platform for travelling. This model can become an initiative to challenge the dominance private aggregators have established, resulting in fair pricing.
The initiative shows the government’s commitment to fair salaries and independent business models in the mobility industry, even though details like the pricing structure, app development, and deployment timeframe are still to be disclosed. In conclusion, Sahkar Taxi is an approach to transform the transportation industry in India, focusing more on fair pricing, empowerment, and cooperation.
Conclusion
Sahkar Taxi presents an ambitious and necessary alternative to existing ride-hailing platforms. Its success depends on its ability to navigate financial, technological, and consumer adoption challenges. If executed well, it could set a precedent for ethical, community-driven transportation in India.