The Aakhya Weekly #170 | The Road to Bharat Taxi: From Cancellations to Cooperation
In Focus: Cabs, Cooperation, and a Comeback
My day started with booking a cab at 8:45 AM to reach the office by 9:30 AM. Three drivers accepted and cancelled in a row, each citing destination and fare-related issues as reasons. When one finally agreed, the surge pricing feature had doubled the fare. By the time I arrived, the morning meeting was over, another day lost to unpredictable city rides.
For years, users of app-based cab services have voiced frustrations with unclean cars, unpredictable fare spikes, frequent cancellations at peak hours, and erratic service experiences. Drivers, too, have expressed dissatisfaction, particularly regarding steep commission cuts, which can take away nearly a quarter of their earnings.
In response to these long-standing issues, the government is preparing to introduce its first cooperative ride-hailing model, Bharat Taxi, with the pilot rollout scheduled for November in Delhi. The platform is being developed in partnership with the Union Ministry of Cooperation and the National e-Governance Division (NeGD), which will provide strategic advisory and technical support for key functions like technology integration, data protection, regulatory compliance, cybersecurity, and governance frameworks. The service will be run by Sahakar Taxi Cooperative Limited, a driver-owned entity supported by prominent cooperative institutions such as Amul, IFFCO, NABARD, NCDC, among others. The initial phase will start with 650 vehicles in the capital, with expansion to other cities planned in subsequent months.
What is Bharat Taxi?
Bharat Taxi is part of the government’s broader ‘Sahakar se Samriddhi’ mission, which seeks to strengthen workers and promote inclusive growth through cooperative models. By eliminating commission-based structures and ensuring drivers are stakeholders in the system, the initiative seeks to create a fair, transparent and sustainable mobility ecosystem. Around 5,000 drivers, both men and women, will participate in the initial nationwide phase. The platform is built on four key pillars: Collective ownership, Fair income without surge pricing, Sustainability through electric and CNG fleets, Tech-enabled inclusivity via a multilingual app, 24-hour support, and safety tools
Unlike privately run cab platforms, it will operate as a cooperative, meaning drivers become members rather than service providers to a corporation. By paying a nominal membership fee, they gain full access to the platform while retaining 100% of their fare income. The service is also being built with integration into government digital platforms such as DigiLocker and UMANG, enabling secure digital verification and streamlined service access. Drivers will be referred to as “Saarthis”(charioteers), reflecting the cooperative’s ethos of dignity, shared responsibility and equal partnership in the mobility economy. The cooperative structure guarantees profit sharing and representation in governance. It aligns with the Digital India goal of using technology for inclusion and public service.
Structural Hurdles and Market Realities
India’s taxi ecosystem is a patchwork of regional fare systems, licensing norms, and transport regulations, each city governed by its own set of rules shaped by local authorities, unions, and tourism boards. Removing heavy commissions is attractive, but operating a platform still requires investment in technology, support systems, and fleet standards. Translating a cooperative ideal into a reliable, market-ready platform will demand more than intent, like:
1. Scale, Network Density & Market Entrenchment: Ride-hailing depends on instant availability; too few drivers mean longer wait times and cancellations. Bharat Taxi enters a saturated market dominated by Ola, Uber, and Rapido, all with massive user bases and algorithms fine-tuned over the years. Without rapid scaling, users will default to existing apps, eroding the cooperative’s credibility before it matures.
2. Technology Backbone & Platform Efficiency: Building a mobility app isn’t just coding an interface; it demands precision in real-time mapping, surge logic, behavioural algorithms, and fraud detection. Any glitch, lag, or poor UX could alienate users. Without a sustained investment and Tech Partner, the cooperative risks operational inefficiencies that even goodwill or policy backing can’t fix.
3. Financial Viability & Fare Sustainability: A “no commission, low fare” model appeals ethically but strains finances. Drivers may resist funding their cooperative, while government and institutional partners such as Amul or NABARD would find it difficult to subsidise operations for indefinite periods. Balancing affordable rides with platform maintenance, incentives, and profit-sharing is critical; Bharat Taxi risks the fate of other unsustainable cooperatives.
4. Governance, Accountability & Behavioural Economics: Cooperative governance must stay democratic and transparent. Without checks, elite capture or bureaucratic interference could mirror old cooperative failures. Moreover, commission-free systems don’t automatically ensure driver discipline without incentives for low-demand zones or peak-hour flexibility, behavioural issues like cancellations and selective service could persist, damaging reliability and public trust.
5. Regulatory Fragmentation & Competitive Pushback: The taxi market is governed by diverse states, and national coordination will be complex and time-consuming. Meanwhile, incumbents like Ola and Uber can retaliate with discounts, driver bonuses, or tech upgrades, forcing Bharat Taxi to either bleed cash to compete or risk being priced out early.
From Promise to Performance: What Bharat Taxi Needs Next
For Bharat Taxi to succeed beyond its pilot phase, it must evolve not just as a cab service, but as a trust-driven digital public utility. States with strong union control, like Goa, Kerala, Himachal and others, could sustain themselves through regulated fare systems and cooperative enforcement. The government’s role should remain as an enabler, setting standards, ensuring transparency, and nurturing cooperative governance rather than turning into another centralised aggregator.
However, technology partnerships must be prioritised to ensure efficiency and competitiveness. Bharat Taxi should adopt open APIs and leverage public digital infrastructure such as UPI and ONDC to guarantee interoperability and reduce entry barriers for new players. Moreover, financial sustainability must be addressed at an early stage. While eliminating commissions remains central to Bharat Taxi’s cooperative ethos, the platform’s upkeep, customer support, and insurance require consistent funding. Hybrid models such as minimal technology maintenance fees, cooperative equity contributions, or state-backed credit lines can ensure long-term viability without burdening either users or drivers. Furthermore, driver and commuter engagement must remain central to service delivery. Training modules, grievance redressal systems, and dynamic incentives during peak hours can enhance reliability. By learning from ONDC’s gradual network build-up, Bharat Taxi can expand city by city, adapting to local regulations and avoiding bureaucratic bloat. Finally, success will depend on public trust and cooperative discipline. If Bharat Taxi can deliver clean, timely, fairly priced rides while ensuring that drivers truly own the wheel, it could become not just a transport alternative, but a symbol of India’s cooperative digital future.
Top Stories of the Week
PM Modi Inaugurates ESTIC 2025; Launches ₹1 Lakh-Crore RDI Fund to Boost Private Sector Research
Prime Minister Narendra Modi inaugurated the Emerging Science & Technology Innovation Conclave (ESTIC) 2025 at Bharat Mandapam, launching a ₹1 lakh-crore Research, Development and Innovation (RDI) Fund to drive private sector investment in high-risk, high-impact research. The initiative aims to strengthen India’s innovation ecosystem and accelerate its transition toward a technology-driven economy.
He also announced the establishment of the Anusandhan Research Foundation to promote R&D across universities and industries, emphasising that India is emerging as a global technology pioneer rather than a mere consumer.
The three-day ESTIC 2025, hosting over 3,000 participants including Nobel Laureates, scientists, and policymakers, will spotlight 11 thematic areas such as AI, quantum science, health tech, and semiconductors.
MeitY Launches National AI Governance Guidelines to Enable Responsible Innovation
The India AI Governance Guidelines were formally unveiled by Prof. Ajay Kumar Sood, Principal Scientific Adviser to the Government of India, in the presence of Shri S. Krishnan, Secretary, MeitY; Shri Abhishek Singh, Additional Secretary, MeitY and CEO, IndiaAI Mission; Ms. Kavita Bhatia, Scientist ‘G’ & COO, IndiaAI Mission; and Prof. B. Ravindran of IIT Madras. The event also featured participation from Dr. Preeti Banzal and Dr. Parvinder Maini from the Office of the Principal Scientific Adviser. The launch marks a significant step forward as India positions itself as a global leader in responsible and inclusive AI governance, setting the stage for the upcoming India–AI Impact Summit 2026.
The newly released guidelines outline a comprehensive governance framework designed to further innovation while ensuring AI development remains ethical, transparent, and accountable. The guiding framework is built around seven guiding principles, or Sutras, for responsible AI, providing key recommendations across six pillars of governance, an action plan with short-, medium-, and long-term timelines, and practical directives for industry, developers, and regulators. These measures aim to strike a balance between progress and protection, enabling India to harness AI’s transformative potential while safeguarding societal trust and human values.
A Few Good Reads
Anushka Saxena writes that Trump and Xi have talked, but that doesn’t mean all is resolved
Kavita Rao notes that while service-sector jobs have grown, employment elasticity remains below 1, meaning output gains don’t translate fully into jobs
Rajat Banerji argues that India’s direct selling industry needs policy reform and clearer regulation under DPIIT to move beyond a narrow consumer-protection lens and be recognised as a driver of jobs, investment, and inclusive economic growth.
Rahul Matthan states that humans built AI to serve them, but we could end up as tools wielded by this technology.
Amit Kapoor highlights that India’s gig economy is precarious, urging an urgent overhaul, backed by legal recognition, social protection, and active governance.