Govt-backed Bharat Taxi unlikely to pose immediate threat to Rapido, Uber, but may keep aggregators in check

Bharat Taxi

• Bharat Taxi, India's first cooperative ride-hailing app, launched in Delhi, Gujarat.
• Platform offers zero-commission, surge-free pricing, direct earnings for drivers
• Government backing may help Bharat Taxi scale up and expand nationwide

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India’s first cooperative-led ride-hailing platform, Bharat Taxi, is unlikely to pose an immediate threat to established aggregators such as Rapido and Uber, but could act as a competitive check on them, industry sources told Moneycontrol.

Union Home and Cooperation Minister Amit Shah launched Bharat Taxi on February 5 after a two-month pilot in Delhi and Gujarat.

Also, read: Bharat Taxi launches today: India’s first cooperative ride-hailing app takes on Ola, Uber with 'driver-as-owner' pitch

What Bharat Taxi offers

Bharat Taxi app now provides Bharat Bike (bike taxi), Bharat Auto (auto-rickshaw) and cab services across categories including economy, priority, sedan and XL. While operations are now limited to Delhi-NCR and Gujarat, the platform plans to expand to all states and UTs within the next two to three years.

Bharat Taxi operates on a zero-commission, surge-free pricing model, with earnings distributed directly to drivers. The platform positions itself as an indigenous alternative to foreign-funded aggregators, with drivers organised as cooperative members rather than gig workers.

Driver unions welcome the platform

Driver unions have welcomed the launch, describing it as a shift away from commission-heavy models. Indian Federation of App-Based Transport Workers (IFAT) said Bharat Taxi could help restore income stability and dignity for drivers.

Also, read: Killer or catalyst? How Bharat Taxi could shake up Ola-Uber rides

“We strongly welcome Bharat Taxi as a landmark step towards ending the exploitative commission-based model in ride-hailing services. For the first time, drivers are being recognised as owners, not expendable gig workers,” said Shaik Salauddin, co-founder and national general secretary of IFAT and president of TGPWU.

He said initiatives such as Sarathi Didi, aimed at promoting women’s participation and safety, along with share certificates, personal accident insurance and family health insurance, reflect a worker-centric vision.

“With more than three lakh drivers already on board and thousands of rides completed daily, Bharat Taxi has shown that cooperative platforms can work at scale,” Salauddin said.

Kishan Verma, president of the All Delhi Auto-Taxi Transport Congress Union (ADATTCU), said the platform could curb exploitation by private aggregators and enhance passenger safety due to government oversight.

Jyoti Gahlawat, a cab user, posted a review on the Google Play Store: “Although the app was created with good intentions, Bharat Taxi’s prices are not significantly lower than those of Ola and Uber. The only apparent advantage is its commission structure. I have compared prices multiple times for various rides and did not find it particularly efficient. With Ola and Uber, both the driver and the company earn after commission, whereas here the entire fare goes to the driver. Even then, there is not much difference in prices.”

Also, read: From Bharat Taxi to state-run mobility apps, Namma Yatri piggybacks on govt platforms

Industry view: Not a fundamentally new model

Industry sources, however, said Bharat Taxi’s core offering does not significantly differ from existing platforms. “Zero commission was first popularised by Namma Yatri in Bengaluru and later adopted by Rapido and others across states. Since drivers already operate on subscription-based models, Bharat Taxi does not bring something fundamentally new,” an industry source said.

Fares on Bharat Taxi are also broadly in line with those charged by existing aggregators in cities such as Delhi, limiting price-based differentiation. However, the absence of hidden charges and the cooperative structure may make the platform more appealing to drivers.

Rapido welcomes competition

Rapido said it views Bharat Taxi as a positive addition to the mobility ecosystem. “Over the past 24 months, Rapido has operated a SaaS-based subscription model enabling auto and cab drivers to manage fares, rides and earnings independently, without commissions,” a company spokesperson said.

“Bharat Taxi’s adoption of a similar SaaS-led approach reinforces our belief that such models are viable for the future of ride-hailing,” the spokesperson added.

Also, read: Bharat Taxi is launching today. What is it, and should users care?

Government backing may accelerate scale-up

While Bharat Taxi may not disrupt incumbents immediately, government backing could help it scale faster. “There is a possibility that the Centre may encourage Indian Railways, Metro operators and airports to tie up with Bharat Taxi. If that happens, expansion could accelerate significantly,” an industry source said.

Delhi Metro Rail Corporation (DMRC) has already signed MoU with Bharat Taxi to provide integrated last-mile connectivity services.

Technology backbone and concerns

Bharat Taxi is powered by Moving Tech Innovations, the parent company of Namma Yatri, which was launched in Bengaluru in November 2022. Moving Tech Innovations serves as the backend technology partner and also supports state-backed platforms such as Yatri Sathi in West Bengal, Odisha Yatri and Kerala Savaari.

However, some experts have raised transparency concerns. Mobility expert Satya Arikutharam questioned the selection of the technology partner and flagged potential data privacy and market intelligence risks, saying there is little public clarity on whether a transparent bidding or evaluation process was followed.

Lower onboarding costs, higher participation

Government backing also significantly lowers driver onboarding costs, industry executives said. “Private players spend Rs 200-400 per driver on onboarding. Government-backed platforms attract drivers organically through kiosks at bus stands and airports which enables large-scale enrolment at a fraction of the cost,” a mobility startup founder said.

Social security and expansion plans

Bharat Taxi is registered under the Multi-State Cooperative Societies Act, 2002, and was established on June 6, 2025. It offers drivers-referred to as Sarathis-health and accident insurance, retirement savings and support centres, seven of which are operational in Delhi.

Drivers can operate on multiple platforms without exclusivity. Under its women-focused Bike Didi initiative, over 150 women drivers have joined so far. Around four lakh drivers have onboarded, with over 10 lakh users registered. About Rs 10 crore has been distributed directly to drivers.

Also, read: ‘Sahkar, not sarkar’: Amit Shah launches Bharat Taxi, govt-backed rival to Uber and Ola