Union Home and Cooperation Minister Amit Shah has outlined how cab and auto drivers can turn their ₹500 investment into profits through Bharat Taxi, India's first cooperative cab service. According to reports from ET Online, Shah launched the platform in Delhi on February 5 and explained during a 40-minute interaction with drivers from Delhi-NCR and Gujarat that by investing just ₹500, drivers can become co-owners of the platform and earn profits as the company generates money. The minister emphasized that this model differs significantly from existing ride-hailing companies like Uber, Ola, and Rapido, which have no minimum base rates for drivers.
As reported by ET Online, Shah detailed the profit distribution mechanism for driver partners. He explained that if Bharat Taxi earns ₹25 crore in profits after three years, the government will keep ₹5 crore while distributing the remaining ₹20 crore to driver partners based on their performance. The minister stated that 80% of the profits will be deposited back into drivers' accounts based on how many kilometres their taxis have driven, while 20% will be deposited in Bharat Taxi's account as their capital. Shah noted that while drivers will initially receive fixed rent, they will also earn profits as owners of the platform, shifting them from fixed rent earners to profit-sharing owners.
According to ET Online reports, Shah highlighted the cooperative model's benefits over traditional ride-hailing services. He stated that existing aggregators deliberately avoid setting minimum base rates to maximize corporate profits at workers' expense, with complaints about 30% deductions and lack of certainty. The Bharat Taxi platform operates on a cooperative model where drivers are both stakeholders and beneficiaries of profits, unlike conventional services where significant commissions are deducted by the platform. Shah emphasized that the concept ensures workers who are toiling receive profits, not just wealthy individuals.
As reported by ET Online, Shah announced that Bharat Taxi will guarantee a minimum base rate per kilometre for all drivers on its platform. The minister criticized existing ride-hailing companies for avoiding floor rates to maximize corporate profits at workers' expense. Shah explained that the platform's cooperative structure ensures drivers receive fair compensation for their work, addressing longstanding complaints about unpredictable earnings and high commission deductions in the ride-hailing industry.
According to ET Online, Shah announced ambitious expansion plans for Bharat Taxi, which currently operates in Delhi-NCR and Rajkot. The platform aims to onboard up to 15 crore drivers within two years and expand to all cities with municipal corporations within three years. The service plans nationwide expansion and aims to compete with major aggregators such as Ola, Uber, and Rapido. Unlike existing platforms that charge drivers commissions of 25-30%, Bharat Taxi currently does not deduct any commission, positioning itself as a cooperative alternative built around driver ownership and profit sharing.
