Bharat Taxi, India’s first government-backed driver-owned ride-hailing cooperative, announced plans to expand its services to over 500 cities and towns across the country within the next two years, according to Union Home and Cooperation Minister Amit Shah.
- Bharat Taxi to enter 500+ cities and towns within two years
- Union Minister alleges predatory pricing by private ride-hailing firms
- Cooperative model supports drivers with financial and operational benefits
What happened
At the official launch of Bharat Taxi’s services in Gujarat, Union Home and Cooperation Minister Amit Shah announced the platform’s ambitious expansion plan to simultaneously cover more than 500 cities and towns across India within two years. The platform, which currently operates in Delhi NCR, Gujarat, Lucknow, Chandigarh, Jaipur, and Mumbai, also plans to introduce various vehicle options, including two-wheelers, auto-rickshaws, and four-wheelers, to serve a diverse customer base.
The launch took place in 14 cities across Gujarat, including Ahmedabad, Surat, and Vadodara, highlighting the government’s intent to rapidly scale the cooperative model. Shah reported that the driver base has already grown to over 700,000 registered drivers or “sarathis,” indicating strong grassroots support and operational scale for Bharat Taxi.
Why it matters
Bharat Taxi’s government-backed cooperative structure is positioned as a disruptive alternative to established ride-hailing firms like Uber and Ola by eliminating commission fees and offering drivers benefits such as loans and insurance. This approach represents a significant shift in the market dynamics that traditionally favor venture-backed aggregators based on aggressive pricing strategies.
Minister Shah accused private competitors of engaging in predatory pricing and providing disproportionate commissions to drivers to deliberately inhibit Bharat Taxi’s growth. He also highlighted frequent complaints from drivers about unfair practices such as delayed payments, unjust suspensions, and excessive commission deductions by private companies. The cooperative model aims to address these grievances and empower drivers with greater control and security.
What to watch next
The ride-hailing market in India is intensifying, with rapid growth expected at a compound annual growth rate of 20.7% through 2033, and a projected market value exceeding $11 billion. Bharat Taxi’s expansion will need to navigate competitive pressures from established players like Uber, Ola, and Rapido, as well as emerging electric and hybrid service providers such as Green SM and Blue Move.
Industry observers will closely monitor how Bharat Taxi’s cooperative model impacts driver welfare, customer pricing, and market share in both metro and tier-2 and tier-3 cities. The platform’s ability to sustain growth while maintaining financial viability against deep-pocketed rivals will be crucial in shaping India’s evolving ride-hailing ecosystem.