Amit Shah Explains Bharat Taxi’s ₹500 Investment and 80% Profit-Sharing Cooperative Model

Union Home and Cooperation Minister Amit Shah on Monday outlined how Bharat Taxi, India’s cooperative ride-hailing platform, aims to turn drivers into stakeholders by allowing them to invest a small amount and share in the platform’s long-term profits.

Speaking at an interaction with drivers in Delhi, Shah explained that drivers need to invest ₹500 to become members of the cooperative, stressing that the model is designed to move beyond fixed earnings and give drivers a share in the platform’s growth.

How the ₹500 Investment Is Expected to Work

Explaining the mechanics of the cooperative, Shah said drivers will initially earn a fixed fare, similar to existing platforms, but profit sharing will begin after the cooperative stabilises over the first three years.

Using a hypothetical example, Shah said, “You only need to invest ₹500. What will happen after three years? Suppose Bharat Taxi earns ₹25 crore, then 20% of this ₹25 crore, that is ₹5 crore, will be deposited in Bharat Taxi’s account as your capital, and 80% will be deposited back in your account based on how many kilometres the taxi has driven.” He added that while the returns may not be immediate, drivers who remain patient would eventually benefit from both ownership and profit participation.

Shah emphasised that the cooperative structure is fundamentally different from private ride-hailing companies, where drivers typically earn per trip while ownership and profits remain with investors. “Right now, you are going to get the fixed rent. But you are the owner, so you should have a share in the profit as well. So this share is going to come, but you will have to be patient for the first three years,” Shah said.

According to him, the aim is to ensure that those who drive the vehicles and generate revenue also benefit directly from the platform’s success.

Profit Distribution Linked to Performance

Under the proposed framework, 80% of profits will be distributed among driver-members based on operational metrics such as kilometres driven, while 20% will be retained within the cooperative as capital to support expansion and sustainability. Shah said the structure is meant to reward productivity while simultaneously strengthening the cooperative’s financial base, ensuring it can scale without external investor pressure.

Drawing parallels with India’s established cooperative institutions, Shah said Bharat Taxi is intended to follow a model where collective ownership replaces commission-driven structures. The platform, launched under a multi-state cooperative framework, is positioned as an alternative to aggregator models that charge high commissions and frequently revise fare structures. Shah said the cooperative would also work towards ensuring base earnings stability for drivers.

Bharat Taxi has begun operations in select cities and plans to expand across major urban centres in phases over the next few years. Shah said driver representation will be built into the governance structure as membership grows, allowing participants to have a say in decision-making.

The minister reiterated that the cooperative approach is meant to create long-term wealth for drivers rather than short-term incentives.

Also read: 'Figuring Out Where Money Has Gone': IDFC Bank After Rs 590 Cr Fraud