Karnataka cab drivers back ‘Sahkar Taxi’ as alternative to private aggregators: Report

Karnataka’s cab drivers have largely welcomed the Central Government’s plan to introduce ‘Sahkar Taxi’, a cooperative ride-hailing service, as an alternative to private platforms like Ola and Uber, The Hindu reported.

Many cab drivers’ unions believe the cooperative model will reduce dependency on private aggregators, which currently charge high commissions, cutting into drivers' earnings.

“This initiative is a step in the right direction. We have been struggling with high commission rates for years, and a government-backed alternative can give us financial relief,” said C. Sampath, general secretary of the Adarsha Auto and Taxi Drivers’ Union according to the publication.

However, some drivers remain skeptical about its execution. “We have seen government-backed projects fail due to inefficiency and poor execution. If bureaucratic delays affect payments and bookings, this scheme won’t be much different from what we already face,” said Tanveer Pasha, president of the Ola Uber Drivers’ and Owners’ Association.

In 2022, driver unions in Bengaluru had urged the state Transport Department to regulate private ride-hailing apps and illegal bike taxi services, citing unfair pricing and lack of government oversight.

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‘Sahkar Taxi’ will be cooperative-run, not government-run

Meanwhile, Union Home and Cooperation Minister Amit Shah clarified that the proposed taxi service would be operated by a cooperative, not the government.

Speaking in the Lok Sabha during a discussion on the Tribhuvan Sahkari University Bill, 2025, Shah said the cooperative model would allow for the registration of taxis, rickshaws, and two-wheelers, ensuring that profits go directly to drivers rather than private companies.

“A cooperative organisation will provide this taxi service, and its profit will directly benefit the drivers. This is cooperation, not government business. The government will not engage in commercial operations,” Shah said at the Times Now Summit 2025.

According to an official statement, the initiative follows the "Sahakar se Samriddhi" (Prosperity through Cooperation) principle, where the cooperative will be formed and managed by taxi drivers themselves. The structure is expected to function similarly to private aggregators like Ola and Uber but with greater financial benefits for drivers.

(With PTI inputs)

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