The Union government has announced to launch new cooperative-based taxi service called "Sahkar Taxi" that will provide bike, cab, and auto services, to compete with popular ride-hailing platforms like Ola, Uber, and Rapido.

The move is aimed at providing an alternative transport service where drivers can earn directly without sharing profits with large corporations.

“Sahkar Taxi will register two-wheeler taxis, auto-rickshaws, and four-wheeler taxis across the country,” Union Home Minister and Minister of Cooperation Amit Shah said, while announcing the initiative in Parliament.

Shah said that Prime Minister Narendra Modi's 'Sahkar se Samriddhi' is not just a slogan, the Ministry of Cooperation has worked day and night in the last three and a half years to realise it.

Shah stated that the Sahkar taxi service will be rolled out "in the coming months”.

Unlike private companies, this government-backed service will ensure that all earnings remain with the drivers, giving them greater financial benefits.

“Profits from this service will not go to any big industrialist but will go solely to the drivers of the vehicles," the Union Cooperation Minister said.

In addition, a cooperative insurance company will also be formed which will do the work of insurance in the cooperative system of the country, Shah said.

“In a short time, it will become the largest insurance company in the private sector,” he noted.

The new initiative aims to empower drivers while providing passengers with a reliable and cost-effective transport option.

A similar model is already operating in West Bengal under the "Yatri Sathi" service, which was initially available in only Kolkata. It has now expanded to cities like Siliguri, Asansol, and Durgapur.

Yatri Sathi offers quick bookings, local language support, affordable fares, and round-the-clock customer assistance, making it a popular option among passengers.

In 2022, Kerala became the first to launch a government-owned online taxi service 'Kerala Savaari'. While it has been shut down due to low usage, the state government now plans to relaunch it with revised fares and improved software.