Making the ongoing ware more interesting between the taxi companies in India, Uber Inc has decided to reduce the prices of its cheapest available option, OberGo to INR 6 per kilometer to match Ola Micro’s rate.
The move was announced in an email to the customer residing in Delhi. The new rate is on par of what Ola offers for its cheapest option and the move is set to make it interesting to see the way people respond to the latest development.
Delhi is one of the top 3 markets in India for taxi services, followed by Mumbai and Bangalore. Uber is operating in 27 Indian cities against Ola’s 102. Despite being available in these many cities, 80-90% of the total business for both the companies takes place in top 8-10 cities.
Though Uber has never been short on money, Ola too is looking to raise further$300-$400 Million to take on the domestic opponent in the country. The two companies have been competing to become the leader in Indian domestic scenario and the fight ahead looks interesting between Old Micro and UberGo.
Old Micro has had a great beginning, after the launch in March this year, the company has experienced a great hike in the customer share, however, it has also increased the cash burn rate for the company. The latest round of funding, which Ola is seeking, will help it become stable against the rival Uber. It has raised $1.2 Billion so far, while Uber has invested $1 Billion in its India unit.