India’s ‘Sahkar’ Taxi App to Challenge Ola and Uber With a Driver-Owned Model
In an unprecedented move to empower taxi drivers across India, Union Home and Cooperation Minister Amit Shah unveiled plans for a national taxi service founded on the cooperative model. This marks a transformative moment in the country’s transport sector, aimed at not just enhancing mobility but also offering an opportunity for drivers to become active stakeholders in the businesses they serve.
At a national seminar held in Mumbai on June 20, 2025, celebrating the International Year of Cooperatives, Shah shared this groundbreaking initiative. He announced the establishment of the Tribhuvan Sahkari University, with the foundation stone-laying ceremony set to take place soon. But it was his announcement about the cooperative-based taxi service that truly captured attention.
A New Era for Taxi Drivers: Ownership and Profits
The forthcoming sahkar taxi service will radically alter the dynamics of India’s transportation sector. Under this model, taxi drivers will not just be employees but members and owners of the service. The model ensures that the profits earned will be directly credited to the drivers’ bank accounts, making them true stakeholders in the success of the business. This initiative aims to directly address the income inequality in the sector, where drivers often face uncertain financial futures.
By placing the power in the hands of those who drive the taxis, this cooperative model promises to provide long-term financial security, greater stability, and a sense of ownership. The move is expected to set a new benchmark for how businesses can thrive while supporting the very people that sustain them.
Insurance and New Opportunities
Shah’s vision extends beyond just the taxi service. He revealed plans to increase the cooperative sector’s share in the insurance industry, paving the way for the establishment of a fully cooperative-owned insurance company. This, in turn, will open up numerous opportunities for drivers, providing them with the security they deserve. The aim is to build a robust ecosystem where drivers are equipped not just with financial rewards, but also with long-term benefits such as health insurance, retirement plans, and more.
The Sahkar Taxi Service
In March, Shah had already introduced the idea of a new app-based taxi service named ‘Sahkar’, inspired by popular platforms like Ola and Uber. This service will not only register taxis but will also include two-wheelers and rickshaws, ensuring broad accessibility and service options. This expansion into various forms of transport highlights the government’s commitment to creating a more inclusive and expansive network for urban mobility.
As the government moves forward with this initiative, India stands on the brink of a significant transportation revolution, one that could reshape the future for taxi drivers, improve accessibility, and enhance the nation’s cooperative sector.