Ola, Uber, Rapido’s new competitor: Cooperative-backed Sahkar Taxi hit To Hit Roads in December 2025

A new player is entering India's ride-hailing market with a unique model. Sahkar Taxi, a cooperative-backed app-based taxi service, is gearing up for its launch tentatively in December, which is expected to compete with dominant players like Ola, Uber and Rapido.

What Is a Sahkar Taxi?

Sahkar Taxi will be a fully cooperative-based service allowing drivers to directly benefit from their work. It will include two-wheeler taxis, rickshaws, and four-wheeler cabs. Union Home and Cooperation Minister Amit Shah announced that all profits from bookings will go to the drivers rather than private corporations.

Sahkar is backed by a group of eight major Indian cooperatives, including Amul, IFFCO, NABARD, NDDB, KRIBHCO, and NAFED. Sahakar Taxi will operate under the Multi-State Co-operative Societies Act with an authorised capital of Rs. 300 crore. Each cooperative has contributed Rs. 10 crore as seed funding to initiate the project.

When Will Sahkar Taxi Be Operational?

The project has been in development for over three years, with labour from the Ministry of Cooperation, and is expected to launch in December 2025. Initial pilot phases may begin in key states such as Delhi, Gujarat, and Maharashtra before expanding nationwide.

Benefits of Sahkar Taxi

One of the major benefits of Sahkar Taxi is that it will allow drivers to become shareholders, which means, unlike conventional ride-hailing apps, Sahkar Taxi gives drivers the opportunity to become co-owners of the platform. After completing six months of service, drivers will be eligible to buy five shares at Rs.100 each and formally join the cooperative. As shareholders, drivers will gain voting rights, profit-sharing access, and eligibility for social security benefits such as medical coverage and retirement plans.

Not-for-Profit Model

The platform is being built in collaboration with Indian tech partners, including the International Institute of Information Technology, Bengaluru. Sahakar Taxi will operate on a non-profit, community-first model. The revenue generated will be reinvested into the cooperative to fund driver benefits, upgrade services, and support local development.

The cooperative also plans to decentralise its support operations by opening call centres and tech support offices in Tier-II and Tier-III cities, aiming to generate employment in smaller towns and reduce urban migration. There will be no external investors or venture capital influence, with all decisions made collectively by the members of the cooperative.