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Sahkar Taxi: A Government-Backed Ride Service to Compete with Ola and Uber

Written by: Aayushi ChaubeyUpdated on: 29 Oct 2025, 9:28 pm IST
Government-backed Sahkar Taxi to launch in Delhi, offering fair fares and driver ownership to challenge Ola and Uber.
Sahkar Taxi to Compete with Ola and Uber
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A new ride-hailing service named Sahkar Taxi is all set to launch in Delhi next month. Backed by the Central government, this initiative aims to offer a fair and transparent alternative to private players like Ola and Uber.

Sahkar Taxi: A Cooperative Approach to Ride-Hailing

Sahkar Taxi has been established as a multi-state cooperative society called Sahakar Taxi Cooperative Ltd., with an initial capital of ₹300 crore. The project is a collaboration between the Ministry of Cooperation and the National e-Governance Division (NeGD).

Prominent cooperative institutions such as Amul, IFFCO, NAFED, NABARD, KRIBHCO, and the National Cooperative Development Corporation (NCDC) are among its promoters.

Sahkar Taxi Drivers as Owners, Not Contractors

Unlike private ride-hailing companies, Sahkar Taxi will make drivers (known as ‘Saarthis’) cooperative members and co-owners. This means they will share ownership and profits rather than paying heavy commissions.

The membership cost for drivers is minimal, and the platform will not deduct commissions from their earnings. The model aims to provide financial stability and dignity to drivers while promoting the idea of “prosperity through cooperation.”

Sahkar Taxi to Ensure Fair Fares for Passengers

For passengers, Sahkar Taxi promises transparent and consistent pricing. Fares will remain fair and fixed, without sudden surges or hidden charges. The initiative also seeks to address common commuter complaints such as unclean vehicles, disrespectful behavior, and last-minute cancellations.

Technology and Expansion Plans

Through partnerships with DigiLocker, UMANG, and API Setu, the service will integrate seamlessly with India’s digital systems for secure identity verification and compliance.

The Delhi launch will begin with 650 driver-owners in November 2025. The plan is to expand to 20 cities with 5,000 drivers by 2026 and reach one lakh taxis nationwide by 2030.

Read more: PM-Kisan 21st Instalment: J&K Farmers Received an Advanced Payment; What’s the Timeline for Others?

Conclusion

Sahkar Taxi represents a new chapter in India’s ride-hailing industry. It combines technology with cooperative values to empower drivers and provide passengers with affordable, reliable, and ethical transport options. The initiative supports the government’s broader mission of ‘Sahakar se Samriddhi’, achieving prosperity through cooperation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Published on: Oct 29, 2025, 3:56 PM IST

Aayushi Chaubey

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