Union Cooperation Minister Amit Shah on Saturday launched a sharp attack on private app-based cab aggregators such as Uber and Ola alleging that their business model exploits both drivers and commuters through practices that prioritise corporate profits over fair treatment. He said the newly launched cooperative ride-hailing platform, Bharat Taxi, was conceived to provide an alternative that safeguards the interests of drivers while ensuring better service for passengers.

Addressing the launch of Bharat Taxi in 14 cities across Gujarat, Mr. Shah, without naming the companies, alleged that private platforms deduct hefty commissions from drivers, delay payments and suspend their registrations based solely on passenger complaints without giving them an opportunity to present their case.

No more hefty commissions

He said the cooperative model was introduced to eliminate such practices and ensure that drivers are treated as stakeholders rather than service providers dependent on private companies.

“I received phone calls today and some newspapers have reported that Bharat Taxi’s fares are higher. I want to tell customers across the country that wherever Bharat Taxi begins operations, competing companies immediately slash their fares and are prepared to incur losses. Our intention is not to inflict losses on anyone, but reducing fares and offering higher commissions to sarathis (drivers) is being done only to prevent Bharat Taxi from entering the market,” he said.

Mr. Shah alleged that certain companies were willing to sustain short-term losses in an attempt to force Bharat Taxi out of the market and later resume what he described as arbitrary business practices.

‘Companies want it to fail’

“They want Bharat Taxi to fail so they can once again function arbitrarily,” he said, adding that such strategies would not succeed in India, where “the spirit of cooperation and the desire to work for the welfare of others are the greatest strength”.

The event was attended by Gujarat Chief Minister Bhupendra Patel, Deputy Chief Minister Harsh Sanghavi, Minister Jitu Vaghani, Union Cooperation Secretary Ashish Kumar Bhutani, senior cooperative sector officials, representatives of various institutions and over 4,000 Bharat Taxi drivers.

Bharat Taxi, which was soft-launched in Gujarat in December last year, is being projected as India’s first cooperative-owned, driver-led ride-hailing platform. Operating on a zero-commission model, it allows drivers to retain the entire fare while also giving them ownership in the platform.

‘Only motive was profit’

Mr. Shah further alleged that private cab aggregators had prioritised profits by exploiting both drivers and commuters.

“For their profits, these companies exploited countless sarathis as well as citizens who used taxi services. Complaints kept coming. Sometimes commissions were deducted from the driver’s earnings, and fares did not reach them for several days,” he said.

He also alleged that drivers’ registrations were often cancelled solely on the basis of passenger complaints without giving them an opportunity to present their version.

“If a customer filed a complaint, the registration of the driver or sarathi would be cancelled without even hearing their side,” he said.

Mr. Shah said Bharat Taxi had been established under the cooperative model to eliminate such practices and ensure that neither drivers nor passengers were subjected to exploitation.

The platform was formally launched in Ahmedabad, Surat, Vadodara, Rajkot, Dwarka, Somnath, Valsad, Anand, Jamnagar, Bhavnagar, Nadiad, Junagadh, Mehsana and Amreli. It will initially offer services in three categories — two-wheelers, auto-rickshaws and four-wheelers.

To expand its network, Bharat Taxi signed memoranda of understanding with the Gujarat Metro Rail Corporation, Ahmedabad Municipal Corporation, Gujarat State Cooperative Bank, the traffic police, airports in Ahmedabad, Surat and Rajkot, and the Ahmedabad Division of Western Railway.

Mr. Shah said Bharat Taxi would begin operations in Nagpur, Pune, Mumbai, Lucknow, Chandigarh, Jaipur and Kolkata before July 31 and services would be extended to more than 500 cities and towns over the next two years.

Addressing the drivers, he said they had become part of the country’s larger cooperative movement, which already includes crores of farmers. Citing Prime Minister Narendra Modi’s call for ‘Sahakar Se Samriddhi’ (prosperity through cooperation), Mr. Shah said the cooperative model pioneered through Bharat Taxi would eventually be expanded to other sectors as well.