Online cab aggregator Ola has slashed fares for Ola Auto in Ahmedabad and Indore by 50% each. Ahmedabad users can get an Ola Auto for Rs 4 per km and at Rs 5 per km in Indore. This move comes after the company saw an increased demand and revenues for drivers in both the cities.
In the statement, Nitesh Prakash, Senior Director of Operations, said, “.. This price revision has been possible since we have been able to achieve efficiency from the scale of operations..” For Indore, Prakash added, “.. Within just two months of our launch, our auto driver-partners have witnessed an increase in their revenue through better utilization and more paid runs, and hence, we are able to pass on the benefits of this scale to our customers.”
5,000 autos in Ahmedabad and Indore
Ola had launched Auto in Ahmedabad in 2015 and claims to have 3,500 autos registered on its platform in the city. It has also launched a new billing system to record the trip details like time, distance travelled and fares, which will be sent to the registered email ID of the user after the trip. The city, according to Ola, is one of its top markets for Autos. In Indore, Ola was introduced in December 2015 and has 1,500 autos in the city.
Ola claims that users can get an auto from the app in under or up to 5 minutes. It adds that the drivers associated with its platform undergo training in behaviour, etiquette, routes and technology. As of now, the company says that it has 75,000 autorickshaws on the platform in 9 cities.
Uber shuts Auto; Jugnoo funding: Ola’s competitor Uber shut down its Auto operations which were on only in Delhi, while also purging the Pune-Mumbai InterCITY service in December last year. In November 2015, Jugnoo, a hyperlocal delivery and auto rickshaw hailing app, raised an undisclosed amount in a series B round of funding from Paytm.
Previous Ola developments:
– Yesterday, the company announced that it plans to launch Ola Auto, with Ola Share and Ola Shuttle in Uttar Pradesh in a Memorandum of Understanding (MoU) with the UP Government, and would also provide entrepreneurship opportunities to 50,000 men and women over the next 5 years.
– In November, Ola raised Series F funding worth $500 million from Baillie Gifford, Falcon Edge Capital, Tiger Global, SoftBank Group, DST Global and China’s Didi Kuaidi for growth related activities and mobility solutions.
– In March 2015, Ola introduced cashless payments for rides on autorickshaws and kaali peeli taxis through its in-app wallet Ola Money across multiple cities.
– In January 2015, TaxiForSure (which was bought by Ola and later integrated into it) had introduced an auto rickshaw booking service on its mobile app and mobile site in January 2015, two months after Ola launched it.