In a major announcement aimed at reshaping India’s ride-hailing sector, Amit Shah assured taxi drivers that 80% of profits will directly reach them under the newly launched Bharat Taxi platform. The Union Home Minister met taxi drivers in New Delhi and addressed their concerns regarding the structure, transparency and long-term sustainability of the initiative.

The statement has sparked widespread discussion, as Bharat Taxi positions itself as India’s first cooperative ride-hailing platform backed by the government, marking a significant departure from the commission-based model followed by private app-based taxi aggregators.

A Driver-Owned Model at the Core

Launched on February 5, Bharat Taxi follows a driver-owned cooperative structure, ensuring that those who operate the taxis are also the beneficiaries of the platform’s profits. Unlike traditional ride-hailing companies where a substantial portion of earnings goes to corporate owners or investors, Bharat Taxi is designed to prioritise the welfare of drivers.

The initiative is supported by major cooperative institutions including Amul, Indian Farmers Fertiliser Cooperative Limited, and National Bank for Agriculture and Rural Development. Their involvement underscores the cooperative framework of the project and adds institutional credibility.

Addressing the gathering, Amit Shah said clearly that “80% of earnings would reach the drivers themselves.” He explained that the platform aims to function on principles of fairness, transparency and shared ownership.

No Commission, No Surge Pricing

One of the most striking features of Bharat Taxi is its commitment to a no commission model. According to Shah, drivers will not be subject to heavy commission cuts that often reduce take-home earnings in private platforms.

Instead of commissions, the platform will operate on a nominal membership fee structure. Drivers are required to invest just Rs 500 to become members of the cooperative. Shah emphasised that this small investment grants drivers ownership rights in the platform.

Additionally, Bharat Taxi promises no surge pricing, a practice often criticised by passengers and drivers alike. Fares will be clearly set and transparently communicated, ensuring predictability for both customers and drivers.

Shah reassured drivers that the accounts will remain transparent and accessible, reinforcing the cooperative nature of the initiative.

Profit Distribution Explained

During his interaction, Amit Shah elaborated on how the profit-sharing model will function. He stated that if Bharat Taxi earns Rs 25 crore, 20% will be retained in the company’s account as a collective share, while the remaining 80% will be distributed among drivers based on taxi operations.

This means drivers will earn not only from daily fares but also from the overall profitability of the platform. Shah described this as a transformative shift where “the one who works hard should get the profit.”

He contrasted this approach with earlier ride-hailing models, where a large share of revenue was directed towards company owners and shareholders. In Bharat Taxi, drivers themselves are the owners, fundamentally changing the power equation.

Patience for the First Three Years

While outlining the benefits, Shah also urged drivers to remain patient during the initial growth phase. He indicated that the first three years would be crucial for expansion and consolidation across multiple states.

Building a nationwide ride-hailing network requires technological infrastructure, market penetration, and customer trust. Shah acknowledged these challenges but assured drivers that the cooperative structure would safeguard their interests.

The message was clear: short-term patience will yield long-term prosperity.

Cooperative Principles in Action

The Bharat Taxi model draws inspiration from India’s successful cooperative movements, particularly in sectors like dairy and agriculture. Institutions like Amul and IFFCO have demonstrated how collective ownership can empower producers and workers.

By applying similar principles to the urban transport sector, the government-backed initiative seeks to create a more equitable ecosystem. NABARD’s involvement also signals a focus on financial discipline and rural-urban integration.

The emphasis on transparency, shared profits, and democratic functioning aligns with traditional cooperative values. Drivers are not merely service providers but stakeholders with a direct say in the platform’s functioning.

Transforming the Ride-Hailing Sector

India’s ride-hailing industry has grown rapidly over the past decade, driven by smartphone penetration and urban mobility demands. However, the sector has also faced criticism over high commissions, fluctuating incentives, and driver dissatisfaction.

Bharat Taxi aims to address these concerns by eliminating exploitative practices and ensuring predictable earnings. By removing surge pricing, the platform also seeks to stabilise fare structures, benefiting passengers.

Industry experts believe that if executed effectively, the cooperative model could introduce healthy competition and push private players to rethink their policies.

Economic and Social Impact

The potential impact of Bharat Taxi extends beyond transportation. By ensuring that 80% of profits reach drivers, the platform could enhance financial stability for thousands of families.

Higher take-home income may improve access to healthcare, education and housing for drivers and their dependents. The initiative also aligns with broader goals of inclusive growth and self-reliance.

Moreover, the minimal entry investment of Rs 500 lowers barriers for participation, making ownership accessible even to economically weaker sections.

Government’s Broader Vision

Amit Shah’s interaction with drivers highlighted the government’s intent to promote cooperative entrepreneurship in new-age sectors. The model combines technology with traditional cooperative values, aiming to bridge the gap between digital platforms and grassroots empowerment.

By positioning drivers as owners, Bharat Taxi seeks to redefine the employer-worker relationship. Instead of being dependent on corporate policies, drivers become shareholders in a collective enterprise.

Shah’s assurance that “Bharat Taxi will not exploit you” resonated strongly with attendees, many of whom have previously expressed dissatisfaction with commission-heavy platforms.

Challenges Ahead

Despite its promising framework, Bharat Taxi will need to overcome significant challenges. Competing with established private players requires robust technology, efficient customer support, and effective marketing.

Ensuring seamless app performance, maintaining service quality, and attracting passengers will be critical for sustained growth. Additionally, building trust among drivers during the initial years will be essential.

However, with institutional backing from Amul, IFFCO and NABARD, the initiative has a solid foundation.

Conclusion

The launch of Bharat Taxi marks a bold experiment in cooperative digital entrepreneurship. By promising that 80% of profits will reach drivers, Amit Shah has positioned the platform as a driver-first alternative in India’s competitive ride-hailing market.

With no commissions, no surge pricing, transparent accounts and minimal investment requirements, the initiative seeks to empower drivers economically and socially. While the coming years will determine its success, the model represents a significant shift toward inclusive growth.

If implemented effectively, Bharat Taxi could become a landmark example of how cooperative principles can transform modern service industries, ensuring that prosperity reaches those who power the system every day.

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