The Indian government has introduced a new cooperative taxi service named Bharat Taxi, challenging Uber's significant presence in the local market. According to Amit Shah, the Minister of Cooperation and Home Affairs, this service will allow drivers to maintain the full payment of their rides while also benefiting from a profit-sharing model. Drivers will only need to pay a nominal sum to join the cooperative, which is set at 500 rupees (approximately $5.50). This move is seen as a response to increasing dissatisfaction among users towards Uber and its local competitor Ola, due to high charges and low fare returns for drivers.

The launch of Bharat Taxi comes at a time when public criticism of ride-sharing companies like Uber and Ola has intensified, particularly regarding their pricing structures and commission rates. Shah emphasized the absence of a single ownership for Bharat Taxi, indicating a collective management approach. He also noted that 20% of the company's total profits will be allocated to a capital reserve account to support the cooperative's financial stability over time. This initiative highlights the government's push towards more equitable financial practices within the transportation sector, providing a platform that prioritizes drivers' earnings over corporate profits.

This development could significantly impact the competitive landscape for ride-hailing services in India. By introducing a cooperative model, the government aims to address the grievances of drivers and consumers alike, potentially paving the way for a shift in how urban transportation services operate. If successful, Bharat Taxi could not only challenge Uber's market share but also set a precedent for other countries facing similar issues with ride-hailing business models, showcasing a governmental approach to regulating and supporting local driver profitability in the face of dominant foreign entities.