Paytm and Bharat Taxi Enable UPI Payments
Paytm and Bharat Taxi have partnered to roll out UPI payments for cab rides. The integration aims to expand digital payment use cases in everyday transactions, further normalizing UPI for a broad consumer base.
- Bharat Taxi operates on a driver-owned cooperative model where drivers, called 'Sarathis', retain 100% of their earnings and do not pay a commission, unlike competitors like Uber and Ola. Instead, drivers pay a nominal daily fee of around ₹30 to access the platform. - The payment integration extends beyond in-app UPI to include Paytm's full suite of hardware, such as QR codes, Soundbox devices, and card machines in the taxis. - A key component of the partnership is to improve financial inclusion for drivers by facilitating quicker payouts, smoother digital onboarding, and providing access to essential services like insurance. - Bharat Taxi is a recent, government-supported initiative launched on February 5, 2026, by Union Home and Cooperation Minister Amit Shah, positioning it as a state-backed competitor in the ride-hailing market. - For passengers, Bharat Taxi's value proposition includes the elimination of surge pricing and offering fares that are generally cheaper than those of established ride-hailing platforms. - The collaboration also includes plans to feature a Bharat Taxi mini-app within the main Paytm application, a move intended to increase the new service's visibility and user acquisition. - As of its launch period in early February 2026, the platform had already registered over 400,000 drivers and was completing approximately 10,000 rides daily. - The India taxi market was estimated at over $22 billion in 2025 and is projected to reach nearly $35 billion by 2031, with online bookings accounting for over 70% of the market.
