The Modi government has launched a direct assault on the monopolistic dominance of Ola and Uber, announcing a revolutionary cooperative taxi service—’Sahkar Taxi’—designed to put control back in the hands of drivers. Union Home Minister Amit Shah, speaking in Parliament, revealed the ambitious plan to disrupt corporate strangleholds on the ride-hailing industry and ensure that profits flow directly to those who keep the wheels turning.
For years, drivers on platforms like Ola and Uber have complained about exploitative commission structures, arbitrary fare fluctuations, and opaque pricing algorithms. The central government is now stepping in with a cooperative model that aims to eliminate middlemen and restore fairness to the sector.
“This is not just another policy announcement; this is a mission to empower our hardworking drivers,” Amit Shah declared in the Lok Sabha. “For too long, private companies have siphoned off the earnings of those who do the real work. The government is putting an end to this exploitation.”
Under the cooperative model, two-wheeler taxis, auto-rickshaws, and four-wheelers will be able to operate without corporate intermediaries taking massive cuts from drivers’ earnings. Amit Shah emphasised that this initiative aligns with the government’s vision of ‘Sahkar Se Samriddhi’ (Prosperity through Cooperation), ensuring that those at the grassroots level directly benefit from their work.
The timing of this announcement coincides with mounting scrutiny of Ola and Uber’s business practices. The Central Consumer Protection Authority (CCPA) recently issued notices to both companies after reports emerged that ride fares varied based on whether a user booked via an iPhone or an Android device.
Consumer Affairs Minister Pralhad Joshi did not hold back in his condemnation of these alleged practices. “Any differential pricing based on a consumer’s phone model is nothing short of an unfair trade practice. We will not tolerate such exploitation,” Joshi stated. He further announced that the government would broaden its investigation into digital pricing strategies across multiple sectors, including food delivery and online ticketing platforms.
Both ride-hailing giants have attempted to dismiss the controversy. Ola stated, “We have a uniform pricing structure for all our customers and do not differentiate based on the operating system of the user’s cellphone for identical rides.”
Uber, too, denied the claims, asserting, “We do not set prices based on a rider’s phone manufacturer. We are cooperating with the CCPA to resolve any misunderstanding.” Despite these denials, consumer distrust is at an all-time high. Social media has been ablase with screenshots showing clear price discrepancies, fueling nationwide outrage and increasing demand for an alternative to these corporate giants.
India has seen multiple efforts to challenge Ola and Uber’s dominance. In 2017, Delhi’s taxi drivers launched Sewa Cab, a driver-owned initiative, but it failed to gain traction against entrenched players. Kerala also experimented with a state-backed alternative, but its limited scale hindered its effectiveness.
However, more recent challengers have found success. Namma Yatri, operating on the government-backed ONDC framework, has gained popularity by charging drivers a subscription fee instead of commission per ride. It has expanded beyond Bengaluru into cities like Kolkata, Kochi, and Mysore, proving that alternatives to the corporate duopoly can succeed.
The cooperative taxi initiative has a key advantage over past efforts—it is backed by the central government, ensuring large-scale implementation and widespread adoption. “With the government’s commitment, this initiative will not just survive; it will thrive,” Amit Shah asserted. If implemented successfully, India will become the first country in the world to create a government-backed cooperative alternative to private ride-hailing services.
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