Bharat Taxi Faces Competition from Ola, Uber: Home Minister Amit Shah Highlights Early Challenges

India’s government-backed ride-hailing platform, Bharat Taxi, is navigating early-stage challenges as it seeks to establish itself in a market dominated by private players like Ola and Uber.

In a written reply in the Rajya Sabha, Home Minister Amit Shah acknowledged that the platform is facing stiff competition and resistance to digital adoption among some driver-partners.

Early Challenges Amid Strong Competition

Launched on February 5, 2026, Bharat Taxi operates under a cooperative model, which sets it apart from conventional aggregators. However, its rollout has not been without friction.

The platform is currently active in Delhi-NCR and select Gujarat cities, including Ahmedabad, Rajkot, and Surat. Despite onboarding around 4.31 lakh drivers as of March 23, scaling usage remains a key challenge.

According to Shah, barriers such as familiarity with digital platforms and competition from established players are slowing adoption. To address this, the government is focusing on awareness campaigns, driver training, and improved user experience through e-governance tools.

Cooperative Model Aims to Disrupt the Gig Economy

Unlike commission-based platforms, Bharat Taxi follows a subscription-based model where drivers are members and stakeholders of the cooperative. This structure eliminates commissions and promotes higher earnings retention.

The platform also emphasises transparent fare mechanisms and cooperative governance, aiming to empower drivers through participatory decision-making. In addition, it seeks to address long-standing concerns in the gig economy, including income instability and lack of social security.

Government efforts are centred on ensuring sustainable earnings, welfare benefits, and long-term financial security for driver-partners.

Expansion Plans Across India

Looking ahead, Bharat Taxi plans a phased expansion into Tier 2 and Tier 3 cities, with onboarding already underway in Chandigarh and Lucknow. The long-term goal is to extend services to district and tehsil levels over the next three years.

City-wise expansion, coupled with driver onboarding initiatives and welfare-focused measures, is expected to support adoption.

Conclusion

While Bharat Taxi’s cooperative model offers a distinct alternative to traditional ride-hailing services, its success will depend on overcoming adoption challenges and competing effectively with established platforms. With a strong focus on driver welfare and expansion, the platform represents an ambitious attempt to reshape India’s gig mobility landscape.

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