Union Home and Cooperation Minister Amit Shah on Saturday said that the strategy adopted by competing ride-hailing companies to reduce fares below sustainable levels in response to the launch of Bharat Taxi would not be viable in the long run and would eventually impact their financial performance and market valuations.
Addressing the launch of Bharat Taxi in Gujarat, Shah alleged that rival platforms had lowered fares and increased commissions for drivers in areas where the cooperative-based service had started operations. He urged drivers, referred to as Sarathis, not to be influenced by short-term financial incentives and instead support Bharat Taxi’s long-term cooperative model.
“My request to all the Sarathis, and also to all the customers, is that for a consistent and long-lasting transport service, it is the responsibility of both the customers and the Sarathis to make Bharat Taxi successful. You stay committed, and Bharat Taxi will stand by you,” Shah said.
Highlighting the success of India’s cooperative movement, the Home Minister cited organisations such as Amul, IFFCO, KRIBHCO and the National Dairy Development Board, saying they had successfully competed with private players while remaining committed to the cooperative model.
He said companies resorting to loss-making competition would eventually face financial consequences.
“If the competition is being carried out unfairly, with business being run at a loss, then everyone will see their balance sheets on March 31. Everyone will see them and will come to know,” Shah said.
He further asserted that sustained losses could affect investor confidence and company valuations, adding that balance sheets are subject to public scrutiny and critical analysis.
Describing Bharat Taxi as a long-term cooperative initiative, Shah said the platform had been created to eliminate exploitation, ensure dignity for drivers and improve their economic well-being.
“This cooperative belongs to you. This cooperative exists to stop your exploitation. This cooperative exists to give you respect. This cooperative exists to make you prosperous,” he said.
The Home Minister also said Bharat Taxi would gradually expand its services to members by facilitating access to loans, insurance and business expansion support.
“In the coming days, this cooperative will also help you obtain loans. This cooperative will also look after your insurance. And this cooperative will also support your business expansion model. No company that exists only for itself can do all this,” he said.
-IANS
