Bharat Taxi: Cooperative Societies’ ₹300 Crore Challenge to Ola and Uber

Why in News ?

• Recently, eight major cooperative societies have come together to launch ‘Bharat Taxi’ with a capital of ₹300 crore.
• The aim is to challenge private companies like Ola and Uber by providing a driver-centric and consumer-friendly ride-hailing platform.

• This initiative seeks to revolutionize the urban and rural transport sector through a cooperative framework.
• Cooperation Minister Amit Shah unveiled a comprehensive cooperative policy for this sector, indicating that a cooperative taxi service will be launched by the end of 2025.

Key Points

1. Background and Formation
   • New entity: Multi-State Cooperative Taxi Cooperative Limited
   • Registration date: June 6, 2025
   • Supporting institutions (8 major cooperatives):
     • National Cooperative Development Corporation (NCDC)
     • Indian Farmers Fertiliser Cooperative Limited (IFFCO)
     • Gujarat Cooperative Milk Marketing Federation (GCMMF – Amul)
     • Krishak Bharati Cooperative Limited (KRIBHCO)
     • National Bank for Agriculture and Rural Development (NABARD)
     • National Dairy Development Board (NDDB)
     • National Cooperative Export Limited (NCEL)
       • Other regional cooperative organizations
   • No government equity — fully funded by participating cooperative societies.
2. What makes it different?
   • Cooperative pricing model – ensuring fair income for drivers and affordable fares for passengers.
   • No heavy commissions – unlike private apps, no middlemen increasing costs.
   • Transparency and community ownership – direct benefit of profits to members.
   • Coverage in both urban and rural areas – not limited to metro cities only.
3. Current Status
   • Initially, 200 drivers from Delhi, Gujarat, Uttar Pradesh, and Maharashtra have joined.
   • Nationwide membership drive ongoing.
   • Goal to expand partnership with various regional cooperative societies.
4. Technology and Strategy
   • Technology partner for app development is being selected through a tender process, with a target launch by the end of 2025.
   • The app will operate uniformly across India (not city-specific).
   • Strategy and expansion plan are being developed in partnership with IIM Bangalore.
   • A technology consultant has been appointed.
5. Wider Significance
   • This is not just a cab service but a shift in public transport ownership.
   • Moving away from private VC-backed monopolies towards a community-driven business model.
   • Empowering drivers through collective ownership and prioritizing consumer interests.