Online taxi service Uber has slashed its rates for its cheapest service UberGo by up to 22% in 10 non-metro cities in the country. The move seems like an escalation in price war with its rival Ola.
Fares in Jodhpur and Udaipur have been cut by 22%. Mangalore’s fares was reduced by 20% and Ajmer and Trivandrum saw fares cut by 18%. A full list of the cities and the rate cut can be found here.
Uber will now charge a base fare of Rs 25 instead of Rs 40 in Udaipur and Jodhpur. Also, the per kilometer charge has been reduced to to Rs 7 from Rs 8. The fare cut would bring the cost down to Rs 5 per km in cities like Vizag, Nagpur, Indore and Ahmedabad.
In February, Ola introduced a new price point for its customers in Mumbai called Ola Micro. According to company’s website, the new price category will be available select users in Mumbai and cab fares will start at Rs 45 and subsequent kilometers will be charged Rs 8.
In the same month, Ola also slashed fares for Ola Auto in Ahmedabad and Indore by 50% each.
Cap on surge pricing
In February, Karnataka state issued a number of guidelines for cab aggregators and had banned surge pricing in the state. The fare cannot be higher than the one fixed by Government. At present, this is fixed at Rs 19.5 per km. Similarly, in October 2015, Maharshtra State government guidelines sought to bring cab aggregators under the Motor Vehicles Act and there are reports that the state may do away with surge pricing to bring parity among other taxi operators.
UberMoto in Gurgaon
In March, Uber launched UberMOTO, its bike taxi service in Gurgaon. The company says that this is a pilot and has been launched in agreement with the memorandum of understanding it signed with the Haryana government to introduce ridesharing services in the state earlier this month.
Uber hit a roadblock after the Karnataka government deemed the service illegal in the first week of March, the same week it waslaunched, and now requires bike taxi operators to apply for a license for their service in order to operate in the state. In the same week, Ola launched its bike taxi initiative in Bangalore.