Union Home and Cooperation Minister Amit Shah recently interacted with drivers associated with Bharat Taxi, addressing them as “Saarthi” and outlining how the country’s first cooperative-based taxi service operates. During the interaction, Shah emphasized that unlike private cab aggregators, Bharat Taxi treats its drivers as owners rather than just service providers.
Shah said that the platform has been created to ensure drivers earn better and have decision-making power. He pointed out that private taxi companies are designed primarily to benefit shareholders, while Bharat Taxi’s purpose is to empower drivers financially and socially.
App Launched on February 5
The Bharat Taxi app was officially launched on February 5. Built on a cooperative model, the service aims to offer affordable fares to customers while ensuring stable and higher earnings for drivers. It is being positioned as an alternative to established ride-hailing platforms such as Ola, Uber, and Rapido.
₹500 Membership Makes Drivers Owners
Explaining the ownership structure, Shah said that drivers can become part-owners of the cooperative by contributing just ₹500. In return, each Saarthi becomes a shareholder in the organization, gains voting rights, and is entitled to a share in the profits. He noted that such ownership rights are absent in the gig economy models followed by private aggregators.
80-20 Profit Sharing Formula
Shah elaborated on the revenue-sharing system, stating that if the platform earns ₹25 crore, 20 percent of that amount will be retained by the cooperative for operational expenses. The remaining 80 percent will be distributed among drivers based on their work. Drivers will continue to earn regular fares and, after an initial period of three years, will also start receiving profit shares as owners of the cooperative.
No Surge Pricing Policy
One of the key features of Bharat Taxi is the absence of surge pricing. Each one-hour booking covers up to 10 kilometers. Beyond that, passengers will be charged ₹19 per kilometer and ₹2.50 per minute. Additional costs such as tolls, parking fees, and state permits will be borne separately by the driver.
Support for Drivers
The government has also committed to facilitating car loans and insurance for drivers associated with Bharat Taxi. The app will include in-built support services to assist drivers directly. During the event, several drivers shared positive experiences, including reports of stable monthly earnings and improved livelihoods. A woman driver from Bihar said the platform provided her financial security after her husband’s death.
Nationwide Expansion Planned
At present, Bharat Taxi is operational in Delhi-NCR and Gujarat. The service is expected to expand across the country over the next three years. Each driver holds five shares in the cooperative and does not pay commission per ride. However, a fixed app usage fee of ₹30 per day applies.
