India to Launch Govt-Backed Cooperative Cab Service, Challenges Uber & Ola: Amit Shah
In a bold move to empower drivers and reduce corporate dominance, the Indian government plans to launch a cooperative-run alternative to Uber and Ola. Union Home Minister Amit Shah announced the initiative in Parliament, framing it as part of Prime Minister Narendra Modi’s vision of “Sahkar se Samruddhi” (Prosperity through Cooperation).
Shah, who heads the newly formed Ministry of Cooperation, stated that the service will cover two-wheelers, autorickshaws, and four-wheelers. Unlike private ride-hailing platforms, profits will go directly to drivers instead of corporate owners. “This is the model we are bringing to life,” he declared.
Past attempts to challenge Uber and Ola—such as Delhi’s Sewa Cab and Kerala’s driver-led initiatives—struggled to gain traction. However, newer players like Rapido and Namma Yatri have shown that alternatives can succeed. Namma Yatri, operating on the government-backed ONDC network, charges drivers a flat subscription fee instead of ride commissions and has expanded to multiple cities.
With central government support, Shah’s cooperative model could overcome previous hurdles. By cutting out middlemen, it may boost driver earnings while offering cheaper fares to riders—a potential win-win. If successful, India could become the first country with a state-backed cooperative ride-hailing service, following the legacy of Amul, the world-renowned dairy cooperative.
