Government to Launch ‘Sahkar’ Taxi Service Under Cooperative Model

Union Home and Cooperation Minister Amit Shah announced the launch of a new app-based taxi service, ‘Sahkar’, modeled on Ola and Uber but operating under the cooperative framework. The announcement was made in Parliament during the discussion on the Multi-State Cooperative Societies (Amendment) Bill, 2023, which also introduced provisions for setting up a National Cooperative University.

Introduction to ‘Sahkar’ Taxi Service

The ‘Sahkar’ taxi service is a government-backed initiative that aims to empower drivers by making them stakeholders rather than just service providers. Unlike traditional ride-hailing services like Ola and Uber, which operate under corporate ownership, ‘Sahkar’ will be cooperatively owned to ensure fair earnings and profit-sharing for drivers.

The initiative aligns with the ‘Sahkar se Samriddhi’ (Prosperity through Cooperation) mission and is seen as a major step in reforming the cooperative sector while addressing concerns over unfair pricing strategies by private ride-hailing platforms.

Empowering Drivers and Cooperatives

Key Features of ‘Sahkar’ Taxi Service

• Driver-Owned Model: Unlike private companies where profits are centralized, ‘Sahkar’ will ensure profit-sharing among drivers, allowing them to earn a fair wage.
• Transparent Pricing: The platform is expected to follow a fair and transparent pricing model, addressing concerns of discriminatory pricing observed in existing ride-hailing platforms.
• Government Support: The initiative is being backed by the Ministry of Cooperation, which has been actively working to implement cooperative-based services over the last three and a half years.
• Pilot Launch in Select Cities: While a national rollout timeline has not been specified, the service is likely to be piloted in key cities before expanding across India.

Why ‘Sahkar’ Was Announced Now?

The announcement comes amid increasing scrutiny of ride-hailing giants like Ola and Uber. Recently, the Central Consumer Protection Authority (CCPA) issued notices to both companies regarding allegations of discriminatory pricing. Reports suggested that fares varied based on whether a user was booking via an iPhone or an Android device. This led to concerns about unfair trade practices, prompting the government to introduce an alternative, cooperative-based ride-sharing platform.

National Cooperative University: Strengthening the Cooperative Movement

Multi-State Cooperative Societies (Amendment) Bill, 2023

In addition to the ‘Sahkar’ taxi service, the Multi-State Cooperative Societies (Amendment) Bill, 2023 includes provisions to establish a National Cooperative University.

Key Objectives of the University

• Provide education, diplomas, and certifications in cooperative management.
• Train young professionals in cooperative governance and financial management.
• Strengthen the cooperative sector by developing future cooperative leaders.

Amit Shah emphasized the role of the university in creating a strong foundation for cooperatives, benefiting farmers, small entrepreneurs, and workers engaged in cooperative businesses.

What’s Next for ‘Sahkar’ Taxi Service?

Expected Rollout and Implementation

While no official timeline has been given, the government is expected to pilot the service in key metropolitan cities before a full-scale national rollout. This initiative will be positioned as part of the ‘Sahkar se Samriddhi’ mission, aiming to create sustainable economic opportunities through the cooperative model.

The government may also introduce incentives for drivers to join the cooperative and implement a tech-driven approach to ensure smooth functioning and user-friendly app experience.

Summary Table