India Launches Cooperative Ride-Hailing App to Compete with Uber and Ola

Mumbai, February 5: Union Home and Cooperation Minister Amit Shah will launch the India taxi app on Thursday. This app is the first cooperative ride-hailing service in India. The government aims to provide passengers with a cost-effective alternative to popular cab services like Uber, Ola, and Rapido.

Supported by the Ministry of Cooperation and operated by the Sahakar Taxi Cooperative Limited, India Taxi promotes a driver-owned transportation service. In its initial phase, it will operate on a zero-commission model, ensuring that 100% of the ride fare goes directly to the drivers.

The Ministry of Cooperation stated that the platform will be free for drivers, who will be referred to as “Saarthi.” This initiative aims to protect drivers from the exploitative policies of existing ride-hailing apps.

The app will charge ₹30 per kilometer for rides up to four kilometers, ₹23 per kilometer for rides between four and twelve kilometers, and ₹18 per kilometer for rides exceeding twelve kilometers.

Similar to other apps, India Taxi will integrate with public transit services like the metro, allowing users to complete their journeys using a single app.

In the initial phase, drivers will receive 100% of the fare. In later stages, the cooperative will retain about 20% as a fee, which will be redistributed to drivers as incentives.

Unlike existing platforms, India Taxi plans to avoid surge pricing, although dynamic pricing may be applied under specific circumstances.

According to the Ministry of Cooperation, over 150 female drivers have already joined India Taxi. The app has seen a significant increase in registrations, with approximately 40,000 to 45,000 new users signing up daily over the past two days.

As per a post by the Ministry of Cooperation on the social media platform X in January, the number of registered customers for India Taxi has surpassed 400,000. The app is available on both Android and iOS, ranking ninth on the Google Play Store and thirteenth on the Apple App Store.

Safety features include options to notify emergency contacts, contact a safety team, and activate a siren from within the app. The sign-up process requires only basic information such as a mobile number, name, and email.

Like Ola and Uber, India Taxi plans to establish dedicated pickup and drop zones at airports and aims to expand to other transportation hubs in the future.


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