Delhi government plans ride-hailing service

NEW DELHI: Delhi government plans to launch the city's first ever cooperative ride-hailing service , aiming to offer drivers an alternative to corporate platforms while providing passengers more affordable, surge-free options.

Officials said the service would ensure drivers retain 100% of their earnings, wherein they don't have to pay any commission to cab aggregators. Officials of the registrar cooperative society have been tasked with preparing a detailed blueprint to take the plan forward.

Cooperative minister Ravinder Indraj announced the initiative during the annual general meeting of Delhi Citizen Cooperative Bank on Sunday, describing it as part of govt's larger effort to "revitalise the cooperative movement in the city with new direction and energy".

Speaking to TOI on Monday, Indraj said, "I have asked officials to prepare a feasibility report and develop a framework so Delhi can get cooperative taxi-hailing service. The details are being worked out, but we intend to roll it out soon."

Delhi's scheme draws inspiration from the Sahkar Taxi cooperative currently being developed in Maharashtra and other states, a concept championed by the Union ministry of cooperation .

Earlier this year, Union home minister Amit Shah announced plans for a cooperative taxi service across the country that would include registration of two-wheelers, taxis, rickshaws and four-wheelers under a single umbrella. The profits generated would be shared equitably among driver-members, bypassing corporate intermediaries.

In Delhi, the proposed service will operate through a dedicated app, connecting passengers directly with driver-members of the cooperative. Unlike conventional corporate-run ride-hailing firms, the platform will be owned and managed by the drivers themselves. This model seeks to eliminate commission charges, promising fair and transparent pricing .

"The main objective is to uplift taxi drivers by improving their income, working conditions and overall quality of life. By making drivers active members and stakeholders, govt hopes to build a sustainable model that benefits drivers and consumers alike," said an official.

Passengers, too, stand to gain from the cooperative framework, with promises of reliable service, transparent fares, and no unexpected price surges. "This approach aims for a win-win scenario where drivers enjoy social security benefits and fair profit-sharing, while commuters get affordable rides," the official added.

Maharashtra's Sahkar Taxi is expected to start operations by Dec 2025. Delhi's model will be tailored specifically to the capital's unique needs and commuting patterns, said Indraj. "Our service won't be an exact replica of Maharashtra's, but will be designed to suit Delhi's conditions," he told TOI.

The official said the app will directly connect passengers with drivers. The cooperatives will govern the platform, maintain transparent fare slabs, and ban algorithmic price hikes. Delhi govt will also facilitate necessary regulatory clearances to smooth the rollout, he added.

Taxi industry representatives have welcomed the move. Sanjay Samrat, president, Delhi Taxi and Tourist Transporters Association, said, "Cab aggregators take up to 40% commission on every ride, severely cutting into drivers' earnings. When these firms were launched, their commission was zero, but that has changed drastically."

Samrat said the cooperative scheme should allow the registration of both existing and new CNG vehicles. "Forcing drivers to switch only to electric vehicles will be difficult because of high cost and limited profitability," he said, urging govt to provide affordable loans to drivers to buy vehicles.