Bharat Taxi Promises Zero Commission, Here's What Else Will Drivers Get?

Lucknow: Uttar Pradesh has launched Bharat Taxi in four cities alongside a scheme that cuts the interest rate on certain cooperative loans to farmers. Here is how the two initiatives are intended to work.

What does Bharat Taxi offer drivers?

Taxi, motorcycle and three-wheeler drivers can register with Bharat Taxi and take rides without paying the platform a commission, Chief Minister Yogi Adityanath said at Wednesday’s launch.

The state government also announced social security cover of up to Rs 5 lakh for registered drivers. The announcement did not specify the type of cover, eligibility rules or claims process. Drivers should check the scheme terms before relying on it.

The zero-commission model means the platform says it will not deduct a share of each fare as commission. The announcement did not provide a schedule of any other charges or explain how fares will be set.

Where is the service available?

Bharat Taxi has begun operations in Lucknow, Gorakhpur, Varanasi and Prayagraj. Agreements with Lucknow Airport, Lucknow Metro and Lucknow Police are intended to support its rollout. The government has not given a timetable for expansion to other cities.

Yogi also asked Transport Minister Dayashankar Singh to consider rural bus services on similar lines, saying the approach could create work for young people. That proposal is separate from the taxi launch.

How will farmers benefit?

The Mukhyamantri Krishak Samriddhi Yojana reduces the interest rate on loans provided through the Uttar Pradesh Cooperative Rural Development Bank from 11 percent to 6 percent, according to the Chief Minister.

That is a five-percentage-point reduction. For illustration, annual interest on a Rs 1 lakh loan at those rates would fall from Rs 11,000 to Rs 6,000, a difference of Rs 5,000, assuming a full year at a fixed principal. Actual repayments will depend on the loan terms and outstanding balance.

The announcement did not spell out which borrowers and loan products qualify, whether existing loans are covered, or when the revised rate takes effect.

What else changes for cooperatives?

The interest-free cash credit facility for Primary Agricultural Cooperative Societies, or PACS, has been raised from Rs 10 lakh to Rs 15 lakh. This is funding for eligible societies, rather than a direct payment to individual farmers.

Yogi said 15 of 16 cooperative banks that had become inactive before 2017 are now profitable. He also said 54 lakh new members had joined the cooperative sector.

The government launched digital tools for cooperative and fertiliser services, including the Mukhyamantri Krishak Samriddhi Portal app. It says these systems should help farmers access inputs and services on time. Further operating details were not provided at the launch.

At the event, five drivers received Bharat Taxi share certificates, while farmers received loan sanction letters. The certificates suggest a cooperative structure, though ownership terms were not detailed.