Amit Shah Unveils 'Sahkar': Driver-Owned Cooperative Taxi to Rival Ola-Uber

In a landmark announcement aimed at revolutionising India's taxi services, Union Home and Cooperation Minister Amit Shah unveiled plans for a national cooperative taxi service, 'Sahkar'. This move, aimed at empowering India's taxi drivers, will allow them to own and operate their taxis while receiving profits directly into their bank accounts. The announcement, made during the International Year of Cooperatives 2025 seminar in Mumbai, promises to reshape the future of the Indian taxi sector.

Cooperative Model Sahkar: A New Beginning for India's Taxi Sector

The proposed 'Sahkar' taxi service will operate on a cooperative model, marking a significant departure from the traditional privately owned ride-hailing services like Ola and Uber. Under this model, taxi drivers will not just be workers, but active owners, sharing in the profits generated by their vehicles. This innovation is expected to provide a more equitable distribution of income and better economic security for drivers who often face uncertainty in traditional employment frameworks.

Key Features of the Sahkar Taxi Service

The new cooperative taxi service will allow drivers to become members of a larger cooperative, giving them not only the right to drive but also ownership stakes in the business. Profits will be directly credited to drivers' bank accounts, ensuring that they benefit from the full revenue generated by their services. In addition to this, Shah announced that a fully cooperative-owned insurance company would also be established, offering new opportunities for drivers to access affordable insurance products.

Tribhuvan Sahkari University and Other Initiatives

In addition to the taxi service, Shah also announced the establishment of the Tribhuvan Sahkari University, which will focus on expanding cooperative models across various sectors. The foundation stone for the university will be laid soon, and it will provide education and training to individuals interested in developing cooperative enterprises.

Shah highlighted that the move is part of a broader strategy to increase the cooperative sector’s role in India's economy. By introducing a fully cooperative taxi service, the government aims to empower individuals at the grassroots level and create a sustainable business model that benefits all stakeholders.

Sahkar Taxi Service: Aiming to Rival Ola and Uber

Earlier in March 2025, Shah had announced that the government would launch an app-based taxi service named ‘Sahkar’, aiming to rival the likes of Ola and Uber. The new service will register not just private taxis, but also 2-wheelers, 4-wheelers, and even rickshaws, expanding its reach to a wider range of transport services.

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Potential Impact on the Indian Taxi Industry

The launch of 'Sahkar' marks a transformative shift in the Indian taxi industry, where drivers are often at the mercy of app-based companies, with little control over their earnings. Under the cooperative model, drivers will have a direct stake in the success of the service, encouraging them to work harder and improve service quality. This model promises to provide greater job security, better pay, and a more inclusive business structure.

Conclusion

The announcement of 'Sahkar' represents a groundbreaking development in India's taxi sector. By incorporating a cooperative model, where drivers are also owners, the government aims to empower millions of taxi drivers, improve their financial stability, and promote a more sustainable and equitable system for transport services. With the potential to rival major players like Ola and Uber, 'Sahkar' could redefine how transportation works in India, benefiting both drivers and passengers.

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