Paytm has signed a Memorandum of Understanding with Bharat Taxi, a government-supported ride-hailing platform, to enable digital payments and financial services for drivers on the platform. Bharat Taxi was recently launched and is positioned as a cooperative-based alternative in India’s mobility space.
Under the agreement, Paytm will provide its payment infrastructure to Bharat Taxi. This will allow passengers to pay for rides using UPI within the app, as well as through QR codes, card machines, and Soundbox devices. The partnership also includes onboarding drivers for UPI payments and exploring the integration of a Bharat Taxi mini-app within the Paytm app.
Bharat Taxi operates on a cooperative model where drivers are treated as stakeholders. Unlike traditional ride-hailing platforms that charge commissions per ride, the model claims to allow drivers to retain their full earnings. This structure is being presented as a way to improve income transparency and reduce dependency on platform-controlled pricing.
The collaboration also includes access to financial services for drivers, such as insurance and other offerings. While specific product details have not been disclosed, the move reflects a broader trend in India’s gig economy where fintech firms are targeting drivers and delivery partners with credit, insurance, and payment solutions.
India’s ride-hailing sector has long been dominated by private players such as Ola and Uber, both of which operate commission-based models. Over the past few years, there has been a growing debate around driver earnings, commission rates, and platform policies. Government-backed or cooperative alternatives could introduce new competitive pressure, although their long-term scalability remains to be tested.
For Paytm, the partnership comes at a time when competition in the digital payments market remains intense. UPI has significantly reduced transaction costs across platforms, and fintech firms are increasingly focusing on ecosystem partnerships to expand usage. Integrating with a mobility platform gives Paytm another channel to deepen merchant acceptance and strengthen its presence in daily-use services.
The proposed integration of a mini-app within Paytm could also help Bharat Taxi reach a wider user base quickly. However, success will depend on factors such as driver onboarding, consumer awareness, pricing, and service reliability. Government endorsement may offer initial visibility, but operational efficiency will be critical in a market where established players already have large networks and brand recall.
