India's cooperative sector is set to challenge giants like Ola and Uber by launching a taxi service under the Bharat brand by the end of this year. The service has an authorized capital of Rs 300 crore, and 200 drivers (chalaks) have already been added to it in four states.

The Multi-State Cooperative Taxi Cooperative Limited, registered on June 6, represents a union of eight major cooperatives, including the National Cooperative Development Corporation (NCDC), Indian Farmers Fertilizer Cooperative Limited (IFFCO), and Gujarat Cooperative Milk Marketing Federation (GCMMF). Last month, Cooperative Minister Amit Shah, while unveiling a comprehensive cooperative policy for the sector, indicated that a cooperative taxi service would be launched by the end of 2025.

Taxi drivers will get more returns.

NCDC Deputy Managing Director Rohit Gupta said, The main objective is to ensure better returns to the drivers and provide quality, safe, and affordable services to the passengers. The venture operates without any government stake and is fully funded by participating cooperatives. Its founding members also include Krishak Bharati Sahakari Limited (KRIBHCO), National Bank for Agriculture and Rural Development (NABARD), National Dairy Development Board (NDDB), and National Cooperative Exports Limited (NCEL).

Service will start first in these states.

He said that about 200 drivers have already joined the cooperative society, of which 50 each are from Delhi, Gujarat, Uttar Pradesh, and Maharashtra. The cooperative society is actively contacting other cooperative organizations to expand its network. The cooperative has issued a tender to select a technology partner to develop a ride-hailing app. Gupta said, we will finalize the technology partner in a few days.

He further said that the app is expected to be ready by December. A technology consultant and Indian Institute of Management (IIM)-Bangalore have been engaged to prepare the marketing strategy for this pan-India platform. The service will adopt a cooperative pricing model, and membership campaigns are currently underway to scale up operations. The service will follow a cooperative pricing model, and membership drives are currently underway to scale up its operations.

The move comes at a time when the cooperative sector seeks to leverage its collective strength to compete with established private players in the fast-growing ride-hailing market.

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