India Reboots Co-operative Sector To Boost Growth, Employment As It Gears Up For New Cab-Hailing App

The Ministry of Cooperation, led by Amit Shah, is now gearing up to launch an app-based cab hailing system through the cooperative route.

The aim is to create an alternative to dominant players like Uber and Ola, who at present dominate the market, while also reinforcing traditional cooperative values in a modern, tech-driven context.

The ride-hailing application, tentatively named Bharat, is expected to be ready by the end of the year and will operate as a single app across the country. The introduction could change the dynamics of the sector, which provides employment and livelihood to thousands of gig workers.

Unlike the Uber and Ola model, the cab drivers would be part owners in the process—a cooperative society essentially is a voluntary mechanism where individuals with shared needs come together to achieve common economic goals.

Cooperative Values In A New Sector

This number could further increase and would mean more jobs for people at the grassroots level. Intending to empower small producers and local communities, traditionally, cooperatives in India have thrived in sectors like agriculture, dairy, and rural banking. This is set to change as, for the first time ever, the government tries to bring the cooperative model into the mobility space by creating a digital platform where drivers are not just service providers but stakeholders.

According to government sources, the upcoming service will be structured to give ownership and decision-making power to drivers. Instead of working for a large corporate platform, drivers could become members of the cooperative, sharing in both the revenue and governance of the business. It is learnt that the Multi-State Sahakari Taxi Cooperative Ltd was registered earlier this year for the implementation of the project.

The ride-hailing application, tentatively named Bharat, is expected to be ready by the end of the year and will operate as a single app across the country, sources added. Sources stated that the move comes as part of a push by the Narendra Modi government to promote the cooperative sector.

While the cab-hailing app is the first big initiative of the ministry, set up in July 2021, sources said that several other initiatives would be introduced in due course.

“The idea is to ensure that the benefits of economic growth touch every corner of the country,” a senior government official said, adding that Amul is an example of the success story of the co-operative movement. Besides this, India’s cooperative movements have shaped several key sectors, including banking, agriculture, and housing.

A New Chapter For Cooperatives

The proposed cab-hailing service is being touted as a turning point for India's cooperative sector. Guided by cooperative principles, it aims to offer a blueprint for how worker-owned platforms can deliver both economic fruits to drivers and better services to customers.

Labour rights, fair pay, and alternative ownership models in the digital economy will be the cornerstone of the move. Rooted in the principles of “Sahkar se Samridhi”, the attempt is to provide a democratic and transparent alternative to traditional ride-hailing platforms.

Earlier this year, Shah, who is also the home minister, unveiled the National Cooperation Policy – 2025.

Shah noted that at least one primary cooperative unit will be created in every panchayat, which could be a Primary Agricultural Credit Society (PACS), Primary Dairy Cooperative, Primary Fisheries Cooperative, Primary Multipurpose PACS, or any other primary unit.

For this, a cluster and monitoring system will also be developed, the minister said.

While Amul has been a success story, the cooperative banks have often come under the scanner for financial discrepancies.

“We have to plug the loopholes, and that will be done,” the official said.

A New Path For Gig Economy Workers

India’s app-based cab services form a crucial part of the gig economy, offering livelihoods to thousands across cities.

As per a KPMG report “Unlocking the Potential of Bike-Taxis in India", published in 2024, it pointed out that in 2023, there are an estimated 1.5 million to two million gig motor vehicle drivers in India associated with leading aggregator platforms

The sector offers flexible employment opportunities, with estimates suggesting that it could generate 5.4 million livelihoods by 2030, contributing to the gig economy and overall economic activity, the report added.

Sources stated that the project will be launched in four markets, namely Delhi, Gujarat, Uttar Pradesh, and Maharashtra, first, and currently, the process of onboarding drivers is underway. The services are likely to be extended across the country over the next year.

A cooperative model could change the prevailing concerns around low earnings, high commission fees, and lack of job security for these gig workers. As co-owners, they would likely pay lower platform fees and earn a greater share of the fare. More importantly, they would have a voice in how the platform is run.

How The App Helps

• As part of the cooperative initiative, the app will enable registration of two-wheeler taxis, auto-rickshaws, and four-wheeler cabs across the country.
• The app aims to ensure that drivers retain maximum possible earnings, unlike private companies, which charge platform fees and hefty commissions.
• Bharat App drivers are likely to have better financial security.
• It will also benefit the customers as they will be provided with competitive pricing and more reliable rides.
• The government-backed app is also expected to ensure better regulation and service quality.
• There will also be an attempt at controlling the surge fares being levied by private players.

The Road Ahead: Opportunities and Obstacles

Taking on Uber, Ola, and Rapido will require a strong resolve, as cooperatives in India have historically struggled with bureaucratic red tape and governance inefficiencies. If autonomy, transparency, and professional management are ensured, the Bharat app, backed by the cooperative sector, is expected to stimulate the taxi sector in the country and provide more options to the users and drivers alike.

By backing the cooperative sector ride-hailing app, the government is aiming to embody the values of cooperation, shared ownership, and accountability. And hopes to see it grow into a people-centric alternative to private operators.