India's federal government has launched Bharat Taxi, a new ride-hailing service designed to challenge Uber and Ola. The cooperative model allows drivers to pay 500 rupees ($5.5) to become shareholders and receive profit shares after three years. Minister Amit Shah announced the initiative at an event Monday, emphasizing the service won't operate to make corporate profits.

The entry comes amid driver complaints about high commissions and low fares from existing platforms. Uber and Ola currently dominate India's $2 billion ride-hailing market, expected to grow to $11 billion by 2033. While private competitors like BluSmart have failed to challenge these giants, Bharat Taxi represents the first federal-backed entrant, with over 250,000 drivers already joining the platform.

Currently operating in select states including New Delhi, Bharat Taxi offers cab, autorickshaw, and scooter bookings through a mobile app. The government plans nationwide expansion within two years and will help drivers secure loans for their vehicles. Uber welcomed the competition, stating that a dynamic mobility ecosystem benefits everyone, while remaining confident in its preferred position.