India’s new taxi cooperative aims to empower drivers, challenge ride-hailing apps

A new taxi service, backed by eight cooperatives, is set to change the way Indians book their rides.

The service, registered as the Multi-State Sahakari Taxi Cooperative Ltd, is backed by the National Cooperative Development Corporation as well as seven other leading Indian cooperative institutions: Amul, NDDB, NABARD, IFFCO, KRIBHCO, NAFED and the National Cooperative Export Limited.

These institutions have jointly committed US$ 9 million, out of an authorised capital of US$ 34 million. The cooperative’s area of operation will span Gujarat, Maharashtra, Delhi and Uttar Pradesh, and 200 drivers across four states have been onboarded.

The taxi service – it will reportedly be launched under the brand “Bharat” – marks an important development in how the gig economy might evolve and participate in India’s growth story.

It represents a rare attempt to build a digital platform where the drivers are not just service providers but also co-owners of the business.

India’s ride-hailing industry has grown rapidly over the past decade. Taxi services are expected to grow from $20.5 billion in 2024 to over $61.5 billion by 2033, offering urban consumers convenience and affordable transport.

But for the drivers who have onboarded these platforms, and are often referred to as partners, the reality has been marked by different challenges: rising platform commissions, opaque algorithmic rules, earnings uncertainty and limited access to social...

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