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Uber cuts its tariff in Delhi-NCR region in escalating tariff war with Ola


In an escalating tariff war with rival Ola, cab aggregator Uber has announced that its cheapest service UberGo will now charge Rs 6 per kilometer in the Delhi-NCR region. Uber still charges a base fare of Rs 40 for rides on UberGo.

This move brings Uber in line with Ola’s cheapest service Ola Micro which it introduced in February. Ola Micro charges Rs 6 per kilometer and and a base fare of Rs 45.

Note that Uber’s new tariffs come after it slashed its rates for  UberGo by up to 22% in 10 non-metro cities in April. 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 now charges a base fare of Rs 25 instead of Rs 40 in Udaipur and Jodhpur.

TechCircle points out that Hyderabad has the lowest base fare (Rs 25) while Mumbai has the highest (Rs 45). Likewise, the per km charge of Rs 6 is already in place at Chennai and Pune, while it is the highest in Mumbai at Rs 8 per km with Bangalore, Hyderabad and Kolkata at Rs 7 per km.

Services Uber has stopped recently:
– Surge pricing in Karnataka and Delhi
– Bike taxi service UberMOTO in Bangalore (two months after launch)
UberBLACK service in India except Mumbai
UberAUTO in Delhi and UberINTERCITY in Pune and Mumbai

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Uber’s Recent funding: Earlier this week, Uber raised $3.5 billion from the Saudi Arabian Public Investment Fund, Saudi Arabia’s sovereign wealth fund, less than a month after Apple invested $1 billion in Chinese ride-hailing app Didi Chuxing (formerly known as Didi Kuaidi). An Uber spokesperson told MediaNama that the investment was part of the global fund and would be utilised in strategic markets like India.

Services started by Ola recently:
Ola Outstation, a cab service from Pune to travel to Lonavala, Mumbai, Nashik and Aurangabad.
– Ola Lux, a luxury category of cars will include cars like Jaguar, Mercedes, Audi, BMW, Toyota Fortuner, Honda Accord.
Ola Electric rickshaws in partnership with Bhartiya Micro Credit (BMC) across Delhi, Gurgaon, Noida, Faridabad and Ghaziabad.

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