Bharat Taxi cooperative cab service

• The Union Minister for Home Affairs and Cooperation, Amit Shah, formally launched Bharat Taxi, a cooperative-based ride-hailing platform, in New Delhi.
• The initiative was introduced as a transformational reform in the urban mobility and transport services sector, with a focus on placing drivers, referred to as “sarathis,” at the centre of ownership and operations.
• The launch reflects the Government of India’s broader effort to promote cooperative models in emerging digital and platform-based economies.

What is Bharat Taxi?

• Bharat Taxi is a driver-owned, cooperative ride-hailing service, conceptualised under the vision of “Sahkar se Samriddhi” (Prosperity through Cooperation).
• Unlike private aggregator-based platforms, this model:
  • Treats drivers as owners rather than gig workers, thereby reducing dependency on commission-heavy intermediaries.
  • Aims to eliminate exploitative aggregator structures prevalent in app-based cab services.
• The initiative seeks to apply cooperative principles, traditionally used in agriculture and credit, to the digital mobility ecosystem.

Key features and provisions of Bharat Taxi

• Cooperative ownership structure
  • Drivers, known as sarathis, are members and shareholders of the platform.
  • Decision-making and revenue distribution are designed to remain driver-centric.
• Comprehensive social security coverage
  • Each honoured sarathi receives:
    • Personal accident insurance cover of ₹5 lakh.
    • Family health insurance cover of ₹5 lakh.
  • These provisions aim to address long-standing social security gaps in the gig economy.
• Driver welfare and dignity
  • The model emphasizes long-term income security, professional dignity, and welfare of drivers.
  • It seeks to stabilise earnings by reducing commission deductions.
• Institutional collaboration
  • Memoranda of Understanding (MoUs) are being exchanged with:
    • Key public sector institutions.
    • Private stakeholders and technology partners.
  • This collaboration supports platform scalability and technological robustness.
• Phased nationwide expansion
  • Bharat Taxi is planned to expand across states and major cities over the next two years, enhancing accessibility and coverage.

Significance of Bharat Taxi

• Economic and labour significance
  • The initiative represents a shift from platform capitalism to platform cooperativism, ensuring:
    • Fair income distribution.
    • Greater bargaining power for workers.
  • It directly addresses concerns related to gig workers’ rights, an area of growing policy focus in India.
• Social significance
  • By integrating insurance and welfare benefits, Bharat Taxi promotes:
    • Social protection for informal and platform workers.
    • Financial resilience for driver families.
• Governance and institutional significance
  • The platform aligns with the objectives of the Ministry of Cooperation, established in 2021 to strengthen cooperative institutions.
  • It sets a precedent for cooperative-based digital public service delivery.

Challenges and concerns

• Technological competitiveness with established private aggregators may pose adoption challenges.
• Ensuring efficient governance and transparency within large cooperative structures requires robust institutional mechanisms.
• Sustaining financial viability while keeping user fares competitive remains a critical concern.

Way forward

• Strengthening digital infrastructure and user experience to compete with private platforms.
• Integrating Bharat Taxi with urban transport policies and smart city initiatives.
• Expanding welfare coverage through convergence with social security codes and state-level schemes.
• Continuous capacity building of sarathis in digital literacy and service quality.

Source:

• The Hindu
• Indian Express