Uber flashes another card to stay afloat prior to blocking of its IP Address in India. The company has slashed their fares in Delhi. They are in loggerheads with Delhi Transport Corporation for the alleged rape case incident that took place in December 2014 which is under sub judicious.
Delhi transport Authority is demanding Uber to register their services under radio taxi licence to legalise its trade. However Uber is defying those calls and going ahead in slashing its fares.
Uber has cut its fare in cheapest offering the Ubergo, hatchbacks from Rs. 10 to Rs. 7 per km which is cheaper than even an auto rickshaw; they charge Rs. 8 per km after the minimum distance.
Even UberX, sedan service offering charges have been slashed to Rs. 9 per km and top end UberBlack will cost Rs. 12 per km after crossing the base fares.
Uber has slashed its fares even in Chennai on similar lines – upto 30 percent, setting up stage for fare battle between cab operators and auto rickshaws in highly competitive market.
Uber has effected their fare slash in many cities like Ahmedabad, Bangalore, Chandigarh, Chennai, Hyderabad, Jaipur, Mumbai, New Delhi and Pune. However in Kolkata, Uber has not touched the prices.
The prices have been dropped on all Uber Offerings – UberGo, UberX and UberBlack. “We’re dropping our prices so everyone can now try the full Uber experience. Nothing can beat the fares and the convenience of moving around in an Uber. Press a button and the cheapest ride in town will come to your doorstep,” said company’s blog.
By far Uber is the most funded cab operator services globally and increased the size of its Series ‘E’ round of venture funding to $1 billion adding up $1.8 billion funding it has received in the series. Till now Uber has received $4.3 billion funding in various tranches.
In recent development Uber have adopted Pooch-O’s model. A mobile application aggregates information about autos in the city. The app was developed in joint venture between Delhi Government and IDFC (Infrastructure Development Finance Company) called DIMTS (Delhi Integrated Multi Model Transit System Ltd). This model legally approved by Delhi Transport Department.
After the sexual assault incident, Delhi Transport Department had asked shutdown of application based online transport operators and apply for radio taxi licence. However including Uber all the app based online transport operators complied, however Uber has not received their radio licence till now.