Uber slashes fares in 10 non-metro cities by up to 22%

  • PTI, New Delhi
  • Updated: Apr 13, 2016 17:03 IST
The logo of car-sharing service app Uber on a smartphone over a reserved lane for taxis in a street is seen in this photo illustration. (Reuters File Photo)

Taxi aggregator Uber has cut fares by up to 22% in 10 non-metro cities including Pune and Ahmedabad, a move that will intensify competition with domestic rival, Ola.

While fares have been slashed by 9% in cities like Indore and Nagpur, the same has been cut by 22% in Jodhpur and Udaipur for its affordable service, uberGO, the company said in a blog post. 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.

The other cities where tariff has been reduced include Ajmer, Mangalore and Thiruvananthapuram.

“We are decreasing uberGO prices by up to 22% making our service even more affordable for you to get where you need to go. But it’s also important to note that with increased demand drivers get busier as well,” the company said.

More demand increases driver efficiency on the road, resulting in more trips per hour, and less idle time while driving on Uber, it said.

Bengaluru-based rival Ola had recently launched Micro, its affordable prices service, offering rides at about Rs 6 per km. It had said it may soon overtake rival Uber in terms of number of rides. Ola had said Micro alone, in its first three weeks since the launch, crossed the daily bookings that Ola as a platform did in three years and is estimated to be well over 50% the size of competition in such a short span of time.

Micro is now available in 13 cities including Delhi, Bengaluru, Mumbai, Chennai, Kolkata, Hyderabad, Pune, Jaipur, Ahmedabad, Chandigarh, Bhubaneswar, Coimbatore and Guwahati.

In February, the US-based firm had slashed its fares by up to 25% in Chennai and Kolkata. The company is witnessing a strong competition from domestic players like Ola as well as local taxi operators.

Uber has presence in over 361 cities in 66 countries. In India, it has services in 26 cities, the highest compared to any other country outside the US.

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