A cooperative, or co-op, is a self-help enterprise jointly owned and democratically controlled by its members to meet their common economic, social, and cultural needs and aspirations. Unlike investor-owned businesses focused primarily on maximising profit for shareholders, cooperatives are people-centered, driven by values and principles. They enable individuals to achieve collectively what they might not be able to do alone, pooling resources and market power.
The operational structure of a cooperative is rooted in the principle of “one member, one vote,” regardless of the amount of capital contributed. This ensures that the organisation remains accountable to its users / owners.
* Joint ownership: Members are both the owners and the users of the co-op’s products or services. They typically contribute some capital to the enterprise.
* Democratic control: Members actively participate in setting policies and making key decisions, such as electing the board of directors, which governs the co-op. This is maintained through the one member, one vote system.
* Member economic participation: Profits, or surpluses, are managed democratically. They are often either reinvested in the co-op or distributed to members in proportion to their transactions with the co-op, rather than strictly based on capital invested.
* Autonomy and independence: Co-ops are autonomous, self-help organisations controlled by their members, allowing them to remain independent of external organizations.
Cooperatives are diverse, including consumer co-ops (like grocery stores), worker co-ops (owned by their employees), producer co-ops (like agricultural marketing co-ops), and credit unions. They prioritise serving their members and strengthening their communities.
Not just a desi flavour
Globally, cooperative models are important in the transportation sector because they directly address issues of high commissions, opaque management, and lack of worker rights often associated with proprietary platforms.
Some prominent examples of cooperative taxi services around the world are:
Egged (Israel): Egged is one of the world’s largest public transportation cooperatives, highlighting the cooperative model’s success in large-scale transit.
It is a massive, nationwide bus cooperative that provides a significant percentage of Israel’s public transportation services. It was created through the merger of several smaller bus cooperatives in the 1930s.
Co-op taxi services (widespread traditional model)
Many traditional taxi fleets across major cities globally operate as cooperatives, where the drivers own the collective business entity that handles dispatch, branding, and sometimes centralized maintenance. Numerous local co-op taxi brands exist in cities across Canada, the USA, and Europe (e.g., Yellow Cab Co-op in some US cities). While they may not all use the latest ride-hailing app technology, they embody the cooperative structure of shared ownership.
Namma Yatri (India): While not formally a cooperative yet, it operates on a similar zero-commission / subscription model, ensuring most of the fare goes to the driver. This model is often cited as a successful, ethical alternative that can compete with corporate apps.