Drivers won’t just work for the company, they will own it: Amit Shah outlines Bharat Taxi model

Union Home Minister Amit Shah on Monday laid out the road map for Bharat Taxi, a government-backed cooperative ride-hailing platform positioned as an alternative to private aggregators. Addressing drivers, referred to as saarthis, Shah said the platform is built on a simple idea: drivers will not just work for the company, they will own it. 

“Drivers are the owners of Bharat Taxi. We want them to earn well,” Shah told the gathering, drawing a contrast with existing private cab platforms that, according to him, are structured to benefit corporate owners. 

Launched on February 5 in Delhi, Bharat Taxi is described as India’s first cooperative-based ride-hailing app. It is backed by major cooperative institutions such as Amul, IFFCO, and NABARD. The model promises zero commission on fares, charging drivers only a nominal membership fee.

₹500 entry, ownership stake 

Shah said the entry barrier for drivers has been kept deliberately low. “Our objective is to make the owner prosperous. The only difference is, you are the owner. You only need to invest ₹500,” he said. 

The one-time onboarding fee formally registers each saarthi as a stakeholder in the cooperative. Unlike the gig economy model, where drivers operate as independent contractors without equity, Bharat Taxi aims to give them both a share in profits and a say in decision-making. 

Explaining the revenue structure, Shah said, “Suppose Bharat Taxi earns ₹25 crore; 20% of that will be deposited into the company's account as your share. The remaining 80% will be distributed based on taxi operations. This means that apart from the fare income, you will also earn profit.” 

Under this 80-20 structure, a portion is retained to fund operations and ensure sustainability while the bulk is distributed among drivers based on performance and activity. 

Call for patience in early years 

Shah, however, cautioned drivers that returns from the profit-sharing model would take time to stabilise. “However, patience will be required for the first three years,” he said. During this period, saarthis will continue to receive fixed rental income while the cooperative scales up operations. 

“Right now, you are going to get the fixed rent. But you are the owner, so you should have a share in the profit as well. So, this share is going to come, but you will have to be patient for the first three years,” he added. 

He also said the service would expand to most states over the next three years as the platform grows its base. 

Cooperative, not corporate 

Reiterating the difference from the current models, the minister said, “The objective of Bharat Taxi is not to earn profits like a private company, but to strengthen people. The accounts will remain transparent and accessible to you. Therefore, instead of treating it like a private company, it should function on cooperative principles. Bharat Taxi will not exploit you.” 

He remarked, “Currently, private companies in the taxi service sector aim to make the company owner wealthy. Bharat Taxi also aims to make the owner wealthy. The only difference in the cooperative sector is that the owners here are the saarthis.” 

Expanding on the rationale behind the initiative, Shah said, “The concept is that the one who is working hard, the one who is toiling, should get the profit, not some rich man. Why did we come up with the idea of Bharat Taxi? You said that there were a lot of complaints, 30% was deducted, and there was no certainty… The purpose of running those companies is to make the owners rich. Our purpose is also to make the owners rich. The only difference is that you are the owner." 

No surge pricing, transparent fares 

Bharat Taxi will operate without surge pricing, a feature that has often drawn criticism from riders and drivers on conventional platforms. Each hourly booking will include 10 kilometres of travel. Additional distance will be charged at ₹19 per kilometre, and extra time at ₹2.50 per minute. Tolls, parking, and state permits will be settled directly with the driver. 

Beyond ride operations, the initiative will also facilitate access to car loans and insurance for saarthis. An in-app support service is being set up to provide assistance to drivers through the platform.