Sahakar Taxi Cooperative Limited

Source: TH

Subject: Economy

Context: Union Home and Cooperation Minister formally launched ‘Bharat Taxi’, India’s first cooperative-based taxi service, aimed at transforming the unorganised taxi sector into an ownership-driven model for drivers.

About Sahakar Taxi Cooperative Limited:

What it is?

• Sahakar Taxi Cooperative Limited is a multi-state cooperative society registered under the Multi-State Cooperative Societies Act, 2002. It is the body responsible for operating the Bharat Taxi platform.

• Unlike traditional corporate aggregators, it is owned and governed by the drivers themselves, who are referred to as ‘Sarathis’.

• Established In: June 6, 2025.

• Promoted By: Leading cooperative institutions including NCDC, IFFCO, GCMMF (Amul), KRIBHCO, NAFED, NABARD, NDDB, and NCEL.

Aim and Objectives:

• Empowerment: To shift the unorganised taxi sector into an ownership-rights model where the driver is the Malik (owner).

• Economic Freedom: To eliminate high middleman commissions (often 20-30%) and ensure 100% of the fare (minus a nominal daily access fee) goes directly to the Sarathi.

• Women’s Safety: To provide safe, affordable, and dignified travel for women through the ‘Sarathi Didi’ initiative.

• Social Security: To provide gig workers with access to health insurance, pensions, and government welfare schemes.

How the Model Works?

• Ownership via Shares: Drivers become members of the cooperative by purchasing shares (as low as ₹500). This entitles them to a share in the profits and a vote in the board’s decision-making.

• Zero-Commission Model: The platform does not take a percentage of every ride. Instead, it operates on a transparent, flat daily access fee (approx. ₹30 for cabs and ₹18 for autos).

• Direct Payment: Fare payments are transferred automatically and immediately into the Sarathi’s bank account.

• Democratic Governance: Two representatives chosen by the Sarathis sit on the Board of Directors to look after the interests of the community.

Key Features:

• Sarathi Didi: A dedicated in-app window allowing women passengers to book rides specifically with female drivers (Sarathi Didis) on two-wheelers.

• No Surge Pricing: Provides transparent and fixed pricing for passengers, even during peak hours.

• Integrated Services: Includes two-wheelers, three-wheelers, and four-wheeler taxis on a single platform.

• Social Safety Net: Integrated with the e-Shram portal, giving drivers access to Pradhan Mantri Jan Arogya Yojana (free treatment up to ₹5 lakh) and other gig-worker benefits.

Significance:

• By offering an alternative to the Western commission-based model, it forces private competitors to reduce their fees to remain competitive.

• Within three years, the service is planned to expand across India, from Kashmir to Kanyakumari.