Uber cuts fares; Ola plans another fund raising: India taxi war heats up

Media reports say Ola is gearing up to raise more funds to take on Uber

FP Staff June 15, 2016 13:33:05 IST
Uber cuts fares; Ola plans another fund raising: India taxi war heats up

A price war is raging in the Indian taxi aggregator market, with Uber cutting the prices of UberGO to Rs 6 per km in Delhi NCR to match the prices of Ola Micro. Uber has a base fare of Rs 40 and Ola Micro Rs 45.

"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.

Uber cuts fares Ola plans another fund raising India taxi war heats up

Reuters

According to a report in Medianama, in April Uber had cut fares in 10 non-metro cities.

Meanwhile, media reports say Ola is gearing up to raise more funds to take on Uber. According to a report in the Business Standard, the company is planning to raise $1 billion or Rs 6,700 crore.

Citing sources the report said the company will close the fund raising by the end of July.

Ola's fund raising plans come close on the heels of Uber raising a $3.5 billion from Saudi Arabia's sovereign wealth fund.

According to an earlier report in The Business Standard, apart from using this fund for expansion into the Middle East, the company will also use it for Indian operations.

“This investment is part of global fund and we are incredibly excited to use this capital is globally strategic markets such as India. Having grown exponentially over the past two years, we are bullish on the Indian market and this investment will support the remarkable growth of Uber in India," Uber has been quoted as saying in the BS report.

However, the global major's fund raising has also come under severe criticism. Timothy B Lee in an article in Vox said that "partnering with a country that won't let women drive is a huge PR blunder for Uber".

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