Bharat Taxi to Expand to 500 Indian Cities, Amit Shah Alleges Unfair Competition

Government-backed cooperative ride-hailing platform Bharat Taxi is set to expand its services to over 500 cities and towns across India within the next two years, Union Home and Cooperation Minister Amit Shah announced. The declaration came during the official launch of Bharat Taxi services in 14 cities across Gujarat, including Ahmedabad, Surat, and Vadodara.

Shah also used the occasion to accuse private cab aggregators of engaging in unfair competitive practices. He alleged that these companies are slashing fares and offering higher commissions to drivers to impede Bharat Taxi’s growth and market entry.

Expansion and Driver Support

Shah outlined aggressive expansion plans, stating that Bharat Taxi would first establish a strong presence in major cities like Pune, Mumbai, Lucknow, Chandigarh, Jaipur, and Kolkata. Following this, the platform aims for a comprehensive rollout of two-wheeler, auto, and four-wheeler cab services in 500 cities and towns nationwide. The initiative is bolstered by a reported 7 lakh drivers already associated with Bharat Taxi.

The minister emphasized that Bharat Taxi’s cooperative ownership model is designed to support drivers through loans, insurance, and business expansion opportunities. This model distinguishes it from private aggregators, which Shah criticized for exploiting drivers and passengers through commission deductions, delayed payments, and arbitrary driver suspensions.

Allegations of Unfair Practices

During his address, Shah claimed that rival ride-hailing companies were intentionally reducing fares and increasing driver commissions whenever Bharat Taxi entered a new market. He stated that this pattern was adopted “only to stop Bharat Taxi’s entry into the market,” even if it meant incurring losses for the competitors. Shah reassured customers that Bharat Taxi would continue its expansion despite these competitive tactics.

He recounted receiving phone calls and seeing newspaper reports about Bharat Taxi’s fares being perceived as higher, which he attributed to the fare-slashing strategies of competitors. He asserted that the objective of Bharat Taxi is not to cause losses, but to provide a fair platform.

Key facts

Feature	Detail
Expansion Target	500+ cities in 2 years
Current Driver Base	Over 7 lakh
Operating Model	Government-backed, driver-owned cooperative, zero-commission
Recent Launch	14 cities in Gujarat

Market Dynamics and Competition

Launched in February, Bharat Taxi operates on a zero-commission model and is positioned as India’s first government-backed, driver-owned cooperative ride-hailing platform. It currently serves Delhi NCR, Gujarat, Lucknow, Chandigarh, Jaipur, and Mumbai.

This expansion comes at a time of heightened competition within India’s rapidly growing ride-hailing market, projected to reach $11.06 billion by 2033 with a CAGR of 20.7% between 2026 and 2033. While Rapido currently holds an estimated 50% market share across bike taxis, auto-rickshaws, and cabs, it faces significant competition from established players like Uber and Ola. New entrants are also emerging, such as VinFast parent Vingroup’s Green SM Limo electric cab service in Delhi-NCR, and the joint ride-hailing platform Blue Move by Hyundai Motor and TVS Motor, which is being piloted in the Delhi-NCR region.

For Coruja’s Indian audience, especially those interested in digital marketing, tech, and startups, Bharat Taxi’s ambitious expansion highlights a significant shift in India’s mobility sector. The government’s direct involvement through a cooperative model, coupled with allegations of anti-competitive behavior from existing aggregators, points to a dynamic and potentially disruptive period for ride-hailing services. This development could reshape market strategies for both established platforms and new entrants, influencing consumer choices and driver welfare across the country.

Source: Inc42, https://inc42.com/buzz/bharat-taxi-to-expand-to-500-cities-in-2-years-hm-amit-shah/