From Ola-Uber to ‘Sahkar’: Amit Shah Unveils Cooperative-Based Taxi Service for Driver Empowerment

Mumbai, June 21, 2025: In a significant advancement aimed at empowering taxi drivers and promoting the cooperative sector in India, Union Home and Cooperation Minister Amit Shah has announced the launch of “Sahkar,” a cooperative-based national taxi service. This announcement was made during a national seminar in Mumbai on June 20, 2025, in celebration of the International Year of Cooperatives.

Unlike traditional ride-hailing platforms such as Ola and Uber, Sahkar will operate entirely on a cooperative ownership model, where taxi drivers will not only be members but also part-owners of the platform. Profits generated will be directly distributed to the drivers’ bank accounts, ensuring fair income and long-term financial benefits for them.

 

The service is expected to encompass a variety of mobility options, including two-wheelers, four-wheelers, and rickshaws, while ensuring that earnings are shared directly with those who operate the vehicles.

In his address, Shah also announced the government’s plan to lay the foundation stone for Tribhuvan Sahkari University, a significant step toward enhancing cooperative education and training in India.

 

Additionally, to further bolster the cooperative sector, Shah revealed plans to establish a fully cooperative-owned insurance company. This initiative aims to increase the sector’s share in insurance and create new employment and investment opportunities.

 

The “Sahkar” taxi initiative was initially introduced in March 2025 during discussions on the Multi-State Cooperative Societies (Amendment) Bill, 2023, in Parliament. Shah highlighted that this app-based platform would provide a driver-first alternative to existing aggregator models, protecting drivers from exploitation and unstable earnings.

 

This development is poised to transform the gig economy and serve as a model for inclusive growth by returning ownership and profits to the hands of service providers.

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