Making more money often means working harder and longer, but for Indian cab aggregators, like Ola and Uber the price war continues by cutting costs of cab rides as they already work round the clock.
San Francisco-based Uber has cut its cab fares by Rs 2 per kilometre, in order to compete with Ola micro.
According to a statement on Uber's website Ubergo will now cost Rs 6 per kilometre against the Rs 8 earlier. That would bring it on par with what Ola micro charges for its cab rides.
"We’re always looking to make your Uber ride better and more rewarding. Starting today, we are bringing down prices of UberGO to ?6/km in Delhi NCR. You can now get the same comfort and reliability at a more affordable price," Uber said in an announcement on its website.
Recently, Uber raised $3.5 billion from Saudi Arabia's Public Investment Fund, and as per the media reports, Ola is planning to raise nearly $1 billion to take on Uber, now the world's most valued start-up at $68 billion.
In an email notification, Uber informed its consumers about the latest slashed prices, which triggered a price war amongst the two largest cab aggregators of Indian market. The massive price cut might bring down Ola’s market share, both Uber and Ola are now having same terms and charges in Delhi. However, it’s unclear if Uber plans to cut prices in other cities outside NCR too.
Both Ola and Uber have made investments worth $2.5 billion in India: Uber operates 3,50,000 cabs in 26 Indian cities, while Ola has 5,50,000 across more than 100 cities in Indian.
