Government-Backed Bharat Taxi Takes on Uber, Ola with Cooperative Model

India has launched a government-backed ride-hailing platform, Bharat Taxi, aimed at challenging market leaders Uber and Ola. Announced by Union Home and Cooperation Minister Amit Shah, the service will operate under a cooperative model, allowing drivers to become shareholders by contributing ₹500 and receive a share of profits after three years. Unlike existing platforms, Bharat Taxi will not charge commissions, positioning itself as a driver-centric alternative in India’s rapidly growing mobility market.

The initiative follows mounting complaints from drivers about high commissions and low earnings under dominant platforms. Shah said the goal is not to maximise corporate profits but to ensure income benefits flow directly to drivers rather than large private companies. Currently operating in select states including New Delhi, the government plans to expand the service nationwide within two years. More than 2.5 lakh drivers have already joined the platform, according to officials.

Bharat Taxi will offer app-based bookings for cabs, autorickshaws, and two-wheelers, similar to existing competitors. The move marks the first serious federal government-backed attempt to disrupt the dominance of Uber and Ola in India’s $2 billion ride-hailing market, which is projected to grow sharply over the next decade. The platform will also support drivers with vehicle financing options, including assistance in securing loans by mortgaging their taxis.