Centre will Introduce "Sahkar Taxi" to Rival Ola and Uber

In a market with enormous growth potential, the Indian government plans to introduce a new cooperative-based taxi service called "Sahkar Taxi" nationwide as an alternative to well-known ride-hailing services like Ola and Uber. In Parliament on 26 March, Union Minister Amit Shah unveiled the idea, announcing that the new service will register four-wheeler taxis, rickshaws, and two-wheeler taxis. Additionally, he stated that Sahkar Taxi will guarantee that all profits flow directly to the drivers rather than big businesses, in contrast to current private firm services.

Reaping Financial Benefits for the Drivers

The Minister added that a government-run cooperative sarkar taxi service similar to Ola and Uber will be introduced in the upcoming months on a cooperative basis. Rickshaws, four-wheeler taxis, and two-wheeler taxis will all be registered by the service. The drivers of the vehicle will be the only recipients of the earnings from this service, not any large industrialists. The proposed action will pit the government against Uber, Ola, Rapido, and the recently developed app taxi aggregators like BluSmart, all of whom are fighting for a bigger share of the enormous market in the most populated nation in the world. With robust growth projections, rising Internet penetration, shifting lifestyles, and rising incomes, the market may also have plenty of room for new participants, even though the supply of app-cabs isn't keeping up with demand. Prabhjeet Singh, president of Uber India and South Asia, had previously informed a media outlet that a lack of vehicles is making it difficult for ride-hailing services in India to satisfy growing customer demand, pointing to high asset ownership costs as a major obstacle.

State Governments Testing India’s Taxi Market

The Indian taxi industry is currently valued at $23.40 billion and is expected to reach $44.18 billion by 2030, according to Mordor Intelligence. With the introduction of Yatri Sathi by the Mamata Banerjee-led TMC administration in West Bengal, a comparable model is already in place. The service was first offered in Kolkata and has subsequently spread to Siliguri, Asansol, and Durgapur, among other places. Yatri Sathi is a handy and accessible choice for travellers around the region since it offers prompt dispatch, local language assistance (English or Bengali), reasonable fares, and round-the-clock customer service. Namma Yathri, a privately held taxi services app in Karnataka, uses a similar business model by guaranteeing that all earnings go to the drivers. With a variety of services like taxis, two-wheelers, four-wheelers, and pooling possibilities, the app gives drivers more control over their income while allowing passengers access to economical and effective modes of transportation.