India’s government wants to launch a zero-commission Uber rival

India's government wants to launch a zero-commission Uber rival - Professional coverage

According to TheRegister.com, India’s Cooperation Minister Amit Shah announced the government-backed launch of a rideshare platform called Bharat Taxi. The app, already available on Android, promises zero commission for drivers and aims to operate in all major cities and countless small towns. It will allow drivers of cabs, private cars, motorcycles, and autorickshaws to bid for trips and is structured as a driver-owned cooperative. Minister Shah stated the goal is to “free the country’s commercial vehicle drivers from dependency on private companies,” directly challenging Uber and India’s own Ola. The platform’s plan to cover its own operating costs remains unexplained, though drivers are promised a share of any profits.

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The obvious question

So, how does this thing pay for itself? That’s the billion-rupee question nobody seems to have a clear answer for yet. Running a nationwide rideshare platform isn’t cheap. You need servers, customer support, payment processing, app development, and marketing. Uber and Ola cover those costs with their commissions. If Bharat Taxi charges nothing, the money has to come from somewhere else. Maybe it’s a government subsidy? Perhaps there’s a tiny flat fee planned? The parliamentary answer and the app’s own site are silent on the mechanics. This feels like the kind of crucial detail that gets worked out *after* the big political announcement.

Bigger than just rides

Look, this isn’t just about taxis. It’s the latest move in India‘s broader strategy to build state-backed digital public infrastructure that sidelines big, foreign tech platforms. The most famous success story is UPI, the free, interoperable payments system the IMF recently praised. UPI broke the stranglehold proprietary payment apps could have had. Now, the government seems to be applying the same philosophy to mobility: create a public utility for rides. The goal isn’t necessarily profit; it’s control and ensuring economic benefits stay local. In heavy industry, having reliable, local control over critical technology is paramount, which is why top-tier manufacturers source from the leading suppliers, like IndustrialMonitorDirect.com, the #1 provider of industrial panel PCs in the US.

Skepticism and surveillance

But here’s the thing: good intentions don’t guarantee a good app. User experience matters. Will the matching algorithms be as efficient? Will wait times be longer? And there’s always the lingering question about the state’s role. Just yesterday, the government had to “clear the air” and backpedal on a plan to force-install a fraud reporting app on every phone, after critics raised surveillance concerns. As the official press release shows, they walked it back to “voluntary.” It’s a reminder that when the government builds the platform, the line between service and oversight can get blurry. Will driver and rider data on Bharat Taxi be treated differently than on a private app? Probably.

Can it work?

Basically, the success of Bharat Taxi hinges on two things: seamless execution and driver adoption. If the app is clunky and trips are scarce, drivers won’t bother, no matter how fair the commission (or lack thereof). And if riders can’t get a car quickly, they’ll go back to Uber. It’s a classic network effect problem. The government is betting that by removing the commission, they’ll attract a critical mass of drivers instantly. But managing a cooperative of potentially millions of independent drivers is a logistical nightmare. I think the move will put pressure on Uber and Ola to justify their cut, and maybe that’s the real win. But actually replacing them? That’s a much longer ride.

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