Government's New Ola, Ober-Like Sahkar Taxi: Drivers To Get Full Profit With 'No Intermediary Cut'

New Delhi: The Union Government has decided to launch an app-based taxi service like Ola and Uber, allowing cooperative societies to register two-wheelers, taxis, rickshaws, and four-wheelers on the platform and run the services. The government initiative empowers taxi drivers to earn more profit without any intermediaries taking commissions or any other cut from their pocket.

Announcing the initiative in parliament, Union Minister Amit Shah said that the Ministry of Cooperation has worked relentlessly for three and a half years to implement the project, underscoring that it is a major cooperative taxi service which will be launched in a few months. The government enterprise could probably be a fierce competitor to the major players such as Ober and Ola in the market.

Read Also: Ola, Uber Fare Discrepancy Claims On Android, iPhone: Govt Orders Detailed Probe

Emphasising that the endeavour aligns with Prime Minister Narendra Modi’s vision of ‘Sahkar Se Samriddhi’ (Prosperity through Cooperation), the Home Minister pointed out the initiative would ensure direct profit flow to the drivers.

The government initiative comes at a time when Ola and Uber come under scrutiny due to allegations of discriminatory pricing. The Central Consumer Protection Authority (CCPA) issued notices to both companies after reports surfaced suggesting the platform incurred ride fares based on whether a user was booking via an iPhone or an Android device.

Read Also: Ride-Hailing Apps Charge iPhone Users More Than Android Users: Report

However, both Ola and Uber have rejected the allegations, asserting that they have maintained a uniform pricing structure for all our customers and do not differentiate based on the operating system of the user’s cellphone for identical rides. While Ola said that it has given clarification to the CCPA, an Ober spokesperson has stated they are looking forward to working with the CCPA to resolve any misunderstanding.

In December last year, after a social media user showed two phones displaying different fares for the same Uber ride, Consumer Affairs Minister Pralhad Joshi weighed in on the matter, labeling such differential pricing as an “unfair trade practice”. He also declared that he would ensure investigations are done into the allegations.