Karnataka Cab Drivers Back 'Sahkar Taxi' as Alternative to Private Aggregators

Karnataka Cab Drivers Back 'Sahkar Taxi' as Alternative to Private Aggregators

Karnataka’s cab drivers have largely welcomed the Central Government’s plan to introduce 'Sahkar Taxi', a cooperative ride-hailing service, as an alternative to private platforms like Ola and Uber. Many drivers' unions believe that this cooperative model will help reduce dependency on private aggregators, which currently charge high commissions, thereby cutting into drivers' earnings.

A Cooperative Model to Reduce Commission Burdens

The 'Sahkar Taxi' initiative aims to provide a fair and transparent system where profits directly benefit the drivers. According to C. Sampath, General Secretary of the Adarsha Auto and Taxi Drivers' Union, "This initiative is a step in the right direction. We have been struggling with high commission rates for years, and a government-backed alternative can give us financial relief."

Currently, private ride-hailing platforms take a significant share of drivers’ earnings through commissions and other fees, making it challenging for drivers to sustain their livelihoods. By forming a cooperative, cab drivers hope to take control of their earnings and ensure fair pricing for passengers.

Concerns Over Implementation and Efficiency

Despite the optimism, some drivers remain skeptical about how effectively the initiative will be implemented. Tanveer Pasha, President of the Ola Uber Drivers’ and Owners’ Association, expressed concerns: "We have seen government-backed projects fail due to inefficiency and poor execution. If bureaucratic delays affect payments and bookings, this scheme won’t be much different from what we already face."

Driver unions have previously urged the Karnataka Transport Department to regulate private ride-hailing apps and illegal bike taxi services, citing unfair pricing policies and a lack of government oversight. If 'Sahkar Taxi' fails to provide seamless operations and timely payments, drivers fear it may not be able to compete with existing platforms.

'Sahkar Taxi' Will Be Cooperative-Run, Not Government-Run

To address concerns about government inefficiencies, Union Home and Cooperation Minister Amit Shah clarified that the proposed taxi service would be operated by a cooperative, not the government. Speaking in the Lok Sabha during a discussion on the Tribhuvan Sahkari University Bill, 2025, Shah emphasized that the cooperative model ensures that profits go directly to drivers rather than private companies.

"A cooperative organisation will provide this taxi service, and its profit will directly benefit the drivers. This is cooperation, not government business. The government will not engage in commercial operations," Shah stated at the Times Now Summit 2025.

How Will 'Sahkar Taxi' Work?

According to an official statement, the initiative follows the "Sahakar se Samriddhi" (Prosperity through Cooperation) principle. The cooperative will be formed and managed by taxi drivers themselves. The structure is expected to function similarly to private aggregators like Ola and Uber but with greater financial benefits for drivers.

Key features of the 'Sahkar Taxi' model include:

• No High Commissions: Unlike private platforms that take a significant cut from fares, the cooperative will ensure that most earnings go directly to the drivers.

• Driver-Owned Platform: Since the platform will be owned by drivers, decision-making will be more democratic, ensuring fair pricing and better working conditions.

• Government Support Without Interference: While the government supports the initiative, it will not be involved in commercial operations, allowing the cooperative to function independently.

Impact on Karnataka’s Ride-Hailing Industry

If implemented effectively, 'Sahkar Taxi' has the potential to disrupt the dominance of private aggregators in Karnataka’s ride-hailing industry. It could lead to fairer fares for passengers while ensuring better financial security for drivers. However, its success will depend on efficient management, ease of use for both drivers and passengers, and the ability to compete with existing players in terms of technology and service quality.

By reducing commission burdens and creating a more equitable business model, 'Sahkar Taxi' represents a significant shift in how ride-hailing services can operate in India. If the cooperative model proves successful, it could set a precedent for other states looking to empower their gig workers and reduce reliance on multinational corporations.

Conclusion

The introduction of 'Sahkar Taxi' is a bold move that could reshape the ride-hailing landscape in Karnataka. While the cooperative model offers many advantages, challenges related to execution and adoption remain. If the government and cooperative organizers can address these concerns effectively, this initiative could provide a sustainable and driver-friendly alternative to private aggregators, ultimately benefiting both drivers and passengers.