Published On: Thu, Mar 3rd, 2016

Ola Micro Cabs launched at Rs. 6 per Kilometer, Ola Undercuts Uber

The taxi aggregator Ola has launched a new low-cost service Ola Micro Cabs that is said to follows the rival taxi company Uber’s lowest-cost service, UberGo. The Ola Micro Cabs will have a base fare ranging from Rs. 35 to Rs. 45, at rates of Rs. 6 per kilometer. The Ola Micro Cabs include compact cars like the Datsun Go, Hyundai Eon, and Wagon R, and are now available for bookings in Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune.

Ola Micro Cabs service has been launched by Ola in seven major India cities at a rate of Re 1 less than rival Uber’s UberGo service that used to be the cheapest class of cab available in the country that ranges from Rs. 6 to Rs. 8 per kilometer. However, the base fare of UberGo is still less than Ola Micro Cabs. This means that people opting for Uber for a ride of two to four kilometer would be benefitted compared to the people who opt for Ola Micro Cabs for the same distance and vice-versa.

Ola Micro Cabs launched at Rs. 6 per Kilometer, Ola Undercuts Uber

Ola Micro Cabs cost less than Ola Mini

Ola Micro Cabs is a more attractive option than Ola Mini that charges Rs. 80 for first four kilometers and Rs 10 for every subsequent kilometer. This was making loss to the company, even though the company has a better option in its subsidiary TaxiForSure that is slightly better than Ola Mini.

Talking about the Ola Micro Cabs, Ola’s chief financial officer, Rajiv Bansal said, “The focus of the company is on growth rather than profits at the moment. The price war will go on for as long as it takes. That is not an issue for us. We are solving a real problem here and there are only two key players in such a huge market.”

Ola Micro Cabs launched at Rs. 6 per Kilometer, Ola Undercuts Uber

Ola claims that it operates in over 100 Indian cities with a 70% market share in India while Uber operates in only 26 Indian cities. Ola has got over 350,000 vehicles that include government-licensed taxis and auto-rickshaws while Uber owns over 250,000 driver partners in the country.

Talking about the rival Uber, Rajiv Bansal said, “We operate in more cities than they do and we are in more categories than they are. We are just not looking to provide cabs to the few elite classes. And we are not just focused on a few top cities but providing transportation to the masses in every city in the country.”

There are high hopes that the Ola Micro Cabs will prove to be beneficial to the customers and the company too in terms of rate and comfort.

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