Ola expands its affordable 'Ola Micro' service to six more cities

Service that has created a splash for charging users just Rs 6 per km is being used as an onboarding ramp for new users

Ola has launched its most affordable service ‘Ola Micro’ in six more cities across India as it looks to fend off an attack from global rival Uber. The service which has created a splash for charging users just Rs 6 per kilometre is being used as an onboarding ramp for new users.

The base fare for Ola Micro will start at just Rs 20 (and goes up to Rs 40 depending on the city), while users will be charged Rs 6 per kilometre and an additional Rs 1 per minute of the ride. The category is now available in 13 cities and offers customers rides in sub-compact cars such as the Datsun Go, Maruti Alto and Hyundai Eon.

“Cities like Jaipur, Ahmedabad, Chandigarh, Bhubaneswar, Coimbatore and Guwahati, are experiencing rapid economic growth and hold tremendous potential to grow as Metros of tomorrow. Understanding the unique needs of customers in these cities, we are confident of fuelling the continued growth of these ambitious Tier II cities,” said Raghuvesh Sarup, Chief Marketing Officer and head of categories at Ola, said in a statement.

Micro is just one among the new categories of vehicles Ola has introduced on its platform, as it looking to bring back the focus on its core taxi business. Just yesterday, the company introduced e-rickshaws on its platform in the Delhi-NCR region, with plans to expand the service across smaller towns.

Rival Uber, which claimed its business in India would be larger than Ola’s by April, has faced stiff competition to the claim. Market leader Ola retorted by saying that its Micro category alone in three weeks was doing half as many rides as the whole of Uber in India on any given day.