India’s government is set to launch a rideshare platform and app that charges no commission and is intended to make life harder for Uber and its ilk.
Called Bharat Taxi, the app will be operated by a co-operative company that describes the service as “a sustainable and democratic taxi service owned and operated by drivers” and will deliver “fair income, social security and dignified livelihood for drivers through collective ownership and cooperative principles.”
The app is already available on Android and promises the chance to “book cabs in all major cities and countless small towns across India.” It also reportedly allows operators of cabs, private cars, motorcycles, and even three-wheeled autorickshaws to bid for trips.
Left unexplained at this point is how the platform will cover its operating costs, but drivers who sign up will apparently be in line for a share of any profits the co-op generates.
In a written answer to a parliamentary question, Cooperation Minister Amit Shah said Bharat Taxi will “free the country's commercial vehicle drivers from dependency on private companies.”
That’s a nod to the fact that the likes of Uber, and India’s own rideshare champion Ola, charge considerable commissions on each fare arranged through their apps, and that those fees have reduced the amount of money drivers receive for a trip. It also reflects India’s uneasy relationship with big tech companies, which it fears will dominate local markets with for-profit business models that benefit shareholders but often challenge local businesses.
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India has responded to challenge posed by big tech companies with initiatives like the Unified Payments Interface (UPI) that allows real-time payments between any participating parties and therefore means users can exchange money regardless of which bank or payments apps they use. UPI is also free.
The International Monetary Fund recently hailed UPI as an example of interoperability between closed systems having the power to “empower consumers, foster innovation, and accelerate the shift away from cash.”
Reversing course on compulsory app
Also in India, Minister for Communications and Development Jyotiraditya Scindia yesterday “cleared the air” regarding the nation’s decision to require installation of a fraud reporting app on every smartphone in the country. Critics expressed concerns about the potential for India’s government to surveil citizens.
Scindia pointed out that while India wants the app to be present on every phone, using it won’t be compulsory and users can delete or deactivate it at any time.
But the government later backpedaled and decided not to make installation of the app compulsory, citing strong adoption that made its previous edict redundant. ®