Explainer: Cooperative cab service bets on a fair deal

SAHKAR Taxi Cooperative’s newly launched Bharat Taxi app, which aims to offer a viable alternative to ride-hailing private platforms like Ola, Uber, InDrive and Rapido, has been creating a buzz with its zero-commission, driver-friendly model, besides claims to regulate the fares.

Supported by the government and backed by eight national-level cooperative organisations, the platform, which recently started operations in pilot mode in Delhi and Gujarat, has positioned itself as a citizen-first alternative built on zero commission, transparent fares, and shared ownership.

Some leading cooperative organisations — NCDC, Amul, IFFCO, NAFED, NABARD, KRIBHCO, NDDB, and NCEL — have committed an initial Rs 10 crore each to the cooperative, which was launched in March.

The cooperative model is good news for drivers who have for long navigated the uncertainties of the gig economy, where commissions started from 20-25 per cent, and at times went up to even 40 per cent. Many drivers who registered themselves on these ride-hailing apps found the profits too little to sustain. For instance, after nearly four years of being on ride-sharing platforms like Ola, Uber and InDrive, Satnam Singh, a resident of Saneta village in Banur (Punjab), chose to step away from driving and started exploring other avenues.

“Initially, we were getting incentives to join these platforms. Many of my friends even took loans to buy taxis. However, soon we were paying much more commission, minus the incentives. That left us with hardly any profits as car maintenance and petrol costs had to be borne by the driver,” points out Satnam.

Ola and Uber have since shifted away from their commission-heavy model to subscription plans where drivers pay a fixed daily or monthly fee for access to the platform. For instance, Ola charges a fee of Rs 67 per day from the drivers. Rising fuel costs and algorithm-controlled ride allocation, however, mean no stable income.

For riders, too, the dominance of limited private players is problematic. More often than not, commuters are faced with sudden price surges, especially during peak hours, rains, or festive rush. For those relying on these services on a daily basis, such unpredictable price jumps leave a dent in the monthly budget.

Driver-friendly plans

What sets Bharat Taxi apart from ride-hailing aggregators like Ola, Uber or Rapido is its cooperative model, which is not controlled by any private company. Rather, it is owned and governed by the drivers themselves. This model claims to ensure that the drivers retain the entire fare, with only a nominal membership fee. The cooperative has committed that the fares will be kept predictable and there would be no steep surges.

More than 51,000 auto, car and bike drivers have already registered for the app, which integrates with DigiLocker, UMANG and API Setu for secure identity verification and transactions.

Caution’s the word

Though the app has generated excitement among drivers, there are concerns about how profit-sharing will be calculated and distributed. Meanwhile, the riders are apprehensive about consistent ride availability and long-term sustainability.

Sanjeev Sharma, who commutes daily from Delhi to Gurugram, has downloaded the app but is approaching it cautiously. “The fares sound fair, but it all comes down to reliability. If I’m rushing to office in the morning, I can’t gamble on whether a cab will show up or not.”

Bharat Taxi may not have all the answers yet, but it has certainly reopened the conversation on a fair, cooperative-led mobility system.