Amit Shah Announces Minimum Base Fare for Bharat Taxi Drivers, Criticizes Corporate Aggregators
Cooperation Minister Amit Shah on Monday provided a significant assurance to cab drivers enrolled on the Bharat Taxi platform, promising them a minimum base fare. This move comes as a direct critique of existing corporate aggregators, which Shah accused of operating on models primarily focused on maximizing profits at the expense of driver welfare.
Earnings Structure and Cooperative Capital
During a town hall meeting with cab and auto drivers from Delhi-NCR and Gujarat, Shah outlined a clear earnings structure for Bharat Taxi participants. Drivers will receive 80% of their earnings based on kilometers driven, while the remaining 20% will be retained as cooperative capital. This model is designed to ensure financial stability and collective growth for the driver community.
"Whatever business you do, your minimum should be fixed. And whatever is more than that has to come back to you," Shah emphasized. He revealed that three major corporate aggregators had informed him they had not established any minimum base rate for drivers, highlighting a key differentiator for Bharat Taxi.
Introduction of 'Saarathi Didi' Feature
In a bid to enhance safety and inclusivity, Shah announced a dedicated feature called 'Saarathi Didi'. This initiative allows women traveling alone to prioritize female drivers, addressing concerns about security and comfort in ride-hailing services. The feature is part of Bharat Taxi's broader commitment to creating a user-friendly and secure platform.
Expansion Plans and Amul-Inspired Model
Launched earlier this month, Bharat Taxi currently operates in the National Capital Region (NCR) and Rajkot. However, Shah announced ambitious plans to expand the platform to every city with a civic body across India. The expansion strategy aims to provide a nationwide alternative to existing corporate aggregators.
Shah stated that Bharat Taxi would follow the cooperative model pioneered by Amul, with 85% of profits being returned to the producers—in this case, the drivers. This approach is intended to ensure that drivers benefit directly from the platform's success, fostering a sense of ownership and shared prosperity.
Driver Ownership and Representation
To further empower drivers, Shah detailed opportunities for them to become co-owners of the platform. Drivers can purchase a share for Rs 500, granting them ownership stakes and a voice in the cooperative's operations. As membership grows, board seats will be reserved for driver representatives, ensuring their interests are prioritized in decision-making processes.
This initiative not only provides financial incentives but also promotes democratic governance within the platform, setting it apart from traditional corporate structures.
Broader Implications for the Ride-Hailing Industry
The announcement marks a significant shift in the ride-hailing landscape, with Bharat Taxi positioning itself as a driver-centric alternative. By addressing key issues such as minimum earnings, safety features, and profit-sharing, the platform aims to attract drivers disillusioned with existing aggregators.
Shah's critique of corporate models underscores growing concerns about the gig economy's impact on worker rights and income stability. Bharat Taxi's cooperative approach could serve as a model for other sectors seeking to balance profitability with equitable treatment of producers.
As Bharat Taxi expands, its success will depend on effective implementation of these promises and its ability to compete with established players in the market.
