Loss-making pricing by companies to counter ‘Bharat Taxi’ will not last: HM Shah (2nd Ld)
Gandhinagar, June 27 (IANS) Union Home and Cooperation Minister Amit Shah on Saturday said that competing ride-hailing companies’ strategy of reducing fares below sustainable levels to counter ‘Bharat Taxi’ would ultimately affect their financial performance and market valuations.
Addressing the launch of Bharat Taxi in Gujarat, HM Shah alleged that rival platforms had responded to the cooperative initiative by cutting fares and offering higher commissions to drivers in markets where Bharat Taxi had begun operations.
He urged drivers not to be influenced by short-term financial incentives, saying the long-term objective of Bharat Taxi was to eliminate exploitation and build a cooperative owned by its members.
“My request to all the Sarathis, and also to all the customers, is that for a consistent and long-lasting transport service, it is the responsibility of both the customers and the Sarathis to make Bharat Taxi successful. You stay committed, and Bharat Taxi will stand by you,” he said.
Drawing comparisons with established cooperative organisations, HM Shah said Amul, IFFCO, KRIBHCO and the National Dairy Development Board had all faced competition from private companies but had continued to grow under the cooperative model.
“Did Amul not have to face competition from private dairies? Did IFFCO, KRIBHCO and NDDB not have to face private organisations? Did they not have to face this kind of competition?” he asked.
Referring to what he described as loss-making competition, the Home Minister said the financial consequences would eventually become visible.
“If the competition is being carried out unfairly, with business being run at a loss, then everyone will see their balance sheets on March 31. Everyone will see them and will come to know,” he said.
He added that investors would also assess the impact. “Those who are preparing for valuation will find that, because of this, their valuation itself will decline. And this is no rocket science. Balance sheets are publicly analysed in a critical manner,” he asserted.
HM Shah said Bharat Taxi, by contrast, had been established as a long-term cooperative institution. He said, “This cooperative belongs to you. This cooperative exists to stop your exploitation. This cooperative exists to give you respect. This cooperative exists to make you prosperous.”
He added that the organisation would gradually expand the services offered to members.
“In the coming days, this cooperative will also help you obtain loans. This cooperative will also look after your insurance. And this cooperative will also support your business expansion model. No company that exists only for itself can do all this,” he told Sarathis.
HM Shah concluded by urging Sarathis to remain committed to the cooperative model, saying “its future would depend on service, member participation and long-term sustainability rather than short-term pricing strategies”.
–IANS
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