Shah attacks cab aggregators over ‘unfair’ business model, Pg8

Key Highlights:

• Union Cooperation Minister Amit Shah criticized private app-based cab aggregators like Uber and Ola for their exploitative business models.
• He launched Bharat Taxi, a cooperative ride-hailing platform, in 14 cities across Gujarat.
• Bharat Taxi operates on a zero-commission model, allowing drivers to retain the entire fare and become stakeholders.
• The platform aims to expand to major cities like Nagpur, Pune, Mumbai, Lucknow, Chandigarh, Jaipur, and Kolkata before July 31, and over 500 cities in two years.

Detailed Insights:

• Shah alleged that private platforms deduct hefty commissions, delay payments, and unfairly suspend drivers based on passenger complaints.
• Bharat Taxi was conceived to safeguard driver interests and ensure better service for passengers by treating drivers as stakeholders.
• Competitors are reportedly slashing fares to counter Bharat Taxi's entry into the market.
• The platform was soft-launched in Gujarat in December and offers services in two-wheelers, auto-rickshaws, and four-wheelers.
• The initiative connects drivers to India's larger cooperative movement, emphasizing welfare and collective strength.

Key Concepts Involved:

• Cooperative Model: A business structure where members (drivers in this case) collectively own and democratically control the enterprise.
• Cab Aggregators: Technology platforms that connect passengers with drivers for ride services, typically taking a commission.
• Zero-commission model: A business approach where the platform does not charge a percentage fee on transactions, allowing service providers to keep the full earnings.