Union Home Minister Amit Shah’s announcement of a new cooperative-run ride-hailing service, ‘Sahkar’, has been warmly received by the driving community.
The app, which is expected to compete with private giants like Ola and Uber, aims to give drivers a fairer stake in the ride-hailing ecosystem, promising a better income distribution and transparency in operations. Taxi and auto-rickshaw unions, who have long complained about the exploitation by private operators, are eager for the government’s vision to materialize. According to officials of the Tamil Nadu Auto Thozhilalar Sammelanam, affiliated with the Centre of Indian Trade Unions (CITU), the announcement has been met with cautious optimism. “We welcome the Union Minister’s announcement. This initiative should not remain on paper. We are hoping for its swift launch,” said a senior official. The call for action comes after years of lobbying for a ride-hailing service that prioritizes the drivers’ interests rather than merely serving as an intermediary for passengers.
While drivers are hopeful about the new initiative, there are concerns regarding delays in a similar state-level proposal. The Tamil Nadu state government had already developed its own app using funds from the TN Drivers and Automobile Workshop Workers Welfare Board. However, despite the development of the app, government authorities have yet to move forward with its launch. According to the drivers’ union, the delay has further exacerbated their frustrations, as they continue to face challenges from private app-based services, which they claim exploit both drivers and passengers with hidden charges and unpredictable fare hikes. In light of Shah’s announcement, there is renewed pressure on the state government to fast-track the app developed by the Chennai Unified Metropolitan Transport Authority (CUMTA). This app, still under development, aims to offer integrated ticketing for various modes of transport, including the MTC (Metropolitan Transport Corporation), CMRL (Chennai Metro Rail Limited), EMU (Electric Multiple Units), and MRTS (Mass Rapid Transit System). The app, once launched, will serve as a one-stop platform for commuters and drivers alike.
The drivers’ unions are particularly keen on the government-run service as they believe it could address long-standing grievances related to unfair fare cuts, excessive commissions, and opaque pricing practices that are prevalent with the private ride-hailing platforms. “The new government app will ensure that the earnings go directly to the drivers, reducing the middleman effect,” explained a representative of the Urimai Kural union. He added that Shah’s announcement is a timely response to the rising discontentment among drivers, who have been clamouring for better earnings and working conditions. In terms of technological implementation, CUMTA’s approach to integrating various transport services under one umbrella is also a positive step towards creating a more seamless and efficient urban transport system. The success of the ‘Sahkar’ app hinges on its ability to offer competitive fares, transparency in pricing, and better earning potential for drivers. Moreover, this initiative aligns with broader government goals to promote sustainable, eco-friendly, and equitable modes of transport, particularly in the context of reducing the environmental footprint of urban mobility.
As the transport ecosystem becomes more complex, the need for greater fairness in the business models of ride-hailing services becomes increasingly evident. If implemented successfully, ‘Sahkar’ could not only improve drivers’ livelihoods but also introduce a new era of cooperative-run, sustainable transportation options, which would benefit both drivers and passengers.
