Karnataka cab and auto drivers welcome Centre’s ‘Sahkar Taxi’ initiative as State’s plan stalled

Union Home Minister and Minister of Cooperation Amit Shah recently revealed the government’s vision for a cooperative taxi service, stating that, in the near future, a system would be established wherein two-wheelers, taxis, auto-rickshaws, and four-wheelers could be registered. He further emphasised that the revenue generated would go directly to the drivers, unlike private aggregators that deduct a significant amount as commission.

Karnataka’s cab drivers have expressed support for the Central Government’s decision to launch a cooperative ride-hailing service named ‘Sahkar Taxi’. The plan of the government of Karnataka to introduce its own app remains in limbo.

Union Home Minister and Minister of Cooperation Amit Shah recently revealed the government’s vision for a cooperative taxi service, stating that, in the near future, a system would be established wherein two-wheelers, taxis, auto-rickshaws, and four-wheelers could be registered. He further emphasised that the revenue generated would go directly to the drivers, unlike private aggregators that deduct a significant amount as commission.

Currently, private entities own and operate ride-hailing applications, often retaining a significant portion of drivers’ earnings as commission. This has been a major point of contention among cab and auto drivers. Various unions have raised concerns about the substantial commission fees imposed by private aggregators, which they claim severely impact drivers’ earnings and financial stability.

The Centre’s proposed cooperative model aims to address these grievances. According to a statement released by the Ministry of Cooperation, the initiative seeks to establish a democratic structure where willing taxi drivers form a cooperative society and take charge of its operations. The goal is to ensure equitable distribution of profit among members while simultaneously improving their working conditions and overall earnings. Additionally, the initiative is expected to enhance service quality for customers.

Several cab drivers’ unions have welcomed the Central Government’s move, believing it could offer a more sustainable alternative to existing platforms.

“This cooperative model is a step in the right direction. We have been struggling with high commission rates for years, and a government-backed alternative can finally give us the financial freedom we need,” said C. Sampath, general secretary of Adarsha Auto and Taxi Drivers’ Union.

However, not all drivers are optimistic. Some cab drivers remain sceptical about the feasibility of the initiative.