Mint Quick Edit | Ride hailing market: Could Bharat Taxi bring the competitive relief it needs from a duopoly?

Uber and Ola have long ruled the ride-hailing business, with Rapido having sliced itself a share lately, but if a government plan works out, a cooperative model under the brand Bharat Taxi could alter this market’s rivalry dynamics.

As announced by home minister Amit Shah, this service is set for launch within two months.

What sets it apart, he said, is that profits will go to drivers instead of companies.

Job generation is a major part of the Centre’s aim, which makes its success a matter of public interest, but cab users stand to gain too.

This market is short of competition—which needs to play a more effective regulatory role in keeping everyone’s interests in balance.

While ideas like “surge pricing” follow the logic of supply shortfalls, persistently high fares hint of “supernormal” profits, the type assured by monopolistic clout.

Today’s scenario is ideally suited for the intervention of a cooperative platform that puts ride hailers and cab drivers in touch for free.

To empower on-the-street service providers, though, Bharat Taxi’s app would need to be user-friendly and its algorithm world-class.