Our low-cost service cheaper than auto: Uber

It is also offering a promotional discount of 25-35% for a limited period

Uber has launched its ‘smaller, smarter, cheaper’ variant, uberGO, a low-cost offering which the company said was an ‘India only’ product and claimed its fare could be lower than that of an auto rickshaw. India is the largest market outside the US for the Google-backed firm, which is in the middle of a public relations disaster.

It is also offering a promotional discount of 25 to 35 per cent for a limited period.  “We are excited to announce the launch of uberGO; a spanking new range of low cost, chauffeur-driven hatchbacks (think Tata Indica Vista and Maruti Suzuki Swift) that roll on to the streets of every Uber city in India today,” Bhavik Rathod, general manager in Bengaluru, said on email.

Like in several other parts of the world, Uber has had its share of regulatory hurdles in India too.

The Reserve Bank of India (RBI) asked the company to comply with its payment guidelines by following a two-factor authentication process. Last week, Uber tied up with payment services firm Paytm, which will enable its users to open pre-paid virtual wallet accounts and pre-load those with cash.

RBI, which had earlier given it time until the end of October to do so, had later extended the deadline by a month.

The company is also being investigated for alleged service-tax violations. Rathod had earlier said the company is working with RBI to be completely compliant with Indian regulations.