India, March 27 -- In a move set to challenge ride hailing majors like Ola, Uber and Rapido, the government announced the launch of 'Sahkar Taxi' service that will register two-wheeler and four-wheeler taxis as well as rickshaws.

Speaking at the Lok Sabha, union minister Amit Shah said that the initiative is aimed at giving drivers' full control over their earnings, free from commission cuts by third party platforms.

He further said that the service would allow cooperative societies to register taxis, rickshaws, two-wheelers, and four-wheelers without involving intermediaries. The system is modelled on app-based services but built around a cooperative structure that puts drivers at the centre.

"In the coming months, on the cooperative ...