India’s first government-backed cab service Bharat Taxi launches with zero commission, no surge pricing model

India’s first government-backed cab service Bharat Taxi launches with zero commission, no surge pricing model

Winning Bizness Desk

Mumbai.India on Tuesday marked a major shift in the urban mobility space with the launch of Bharat Taxi, the country’s first cooperative and government-backed app-based cab service. Union Home Minister Amit Shah launched the Bharat Taxi application in Delhi, announcing a driver-owned platform aimed at ending commission-based exploitation and surge pricing practices seen in private aggregators. The service has begun operations in Delhi and select cities of Gujarat, positioning itself as a people-centric alternative to Ola and Uber, with a focus on driver welfare and affordable fares for passengers.

Driver-owned platform without commission cuts

Addressing the launch event, Amit Shah said Bharat Taxi’s biggest strength lies in its zero-commission structure, where drivers remain full stakeholders in the platform rather than contracted workers. Unlike private cab companies that charge drivers 20 to 30 percent commission on every ride, Bharat Taxi allows drivers to retain their entire earnings. The platform also removes surge pricing, ensuring that fares remain stable even during peak hours. According to Shah, this cooperative model is designed to free drivers from dependency on private aggregators and give them long-term financial security.

Successful trial and launch recognition for drivers

The service was piloted on December 2 in Delhi and Rajkot, Gujarat, where it reportedly performed well, leading to the nationwide rollout. During the launch, Shah honoured six top-performing drivers from the trial phase, referred to as ‘Sarathi’. These drivers were presented company share certificates, reinforcing the ownership-based model. They were also provided with extensive insurance coverage, signalling a shift toward structured social security for gig workers.

Key benefits announced for early drivers included:

  • Rs 5 lakh accidental insurance cover
  • Rs 5 lakh family health insurance
  • Shareholding certificates in the cooperative
  • Access to a dedicated driver support system

Long-term welfare and support framework

Beyond immediate earnings, Bharat Taxi has introduced retirement savings schemes and structured support services for all registered drivers. The platform aims to institutionalise benefits that are largely absent in the gig economy. Seven driver support centres have already been set up across key locations in Delhi to assist with onboarding, grievances, and operational issues. The app will be available in Hindi, Gujarati, Marathi, and English, making it accessible to a wider user base.

Expansion roadmap and women driver inclusion

The government-backed service has set an ambitious expansion plan, targeting pan-India presence within two years. Bharat Taxi plans to integrate with the government’s Digital Public Infrastructure to scale operations efficiently. A special focus has been placed on women drivers, known as ‘female Sarathi’, to improve gender participation in the sector.

Key milestones outlined by officials include:

  • 100 women drivers in the first phase
  • 15,000 women drivers by 2030
  • Free training and special insurance from November 15

By March 2026, services will expand to cities such as Mumbai, Pune, and Rajkot, with a fleet of 5,000 drivers. Subsequent phases will cover Lucknow, Bhopal, and Jaipur, growing to 15,000 drivers and 10,000 vehicles.

Who runs Bharat Taxi and future vision

Bharat Taxi operates on a membership-based model under Sahkar Taxi Cooperative Limited, established in June with an initial capital of Rs 300 crore. The cooperative is governed by a council chaired by Amul Managing Director Jayen Mehta, with NCDC Deputy Managing Director Rohit Gupta as vice chairman, alongside eight other members from cooperative institutions. The first board meeting was held on October 16.

Looking ahead, officials said the service will expand to 20 cities by 2027–28 with 50,000 drivers, followed by district headquarters and rural areas between 2028 and 2030. Plans are also underway to integrate the service with FASTag, reinforcing Bharat Taxi’s aim to build a nationwide, cooperative-driven mobility network.