Uber to slash rates in Chennai to beat competition

Hopes price drop creates more accessibility to people

Uber, a leading taxi-hailing app, has decided to slash rates in Chennai from tomorrow.

Starting tomorrow, uberGO, the low-cost hatchback option, will be Rs 6 per km as compared to Rs 8 earlier.

uberX, the sedan option, will be priced at Rs 7 a km as compared to Rs 9 per km. An uberGO ride to the airport from Mylapore will now cost just Rs 285 as against its earlier price of Rs 320.

A commuter had to shell out Rs 180 for an uberX ride from T Nagar, shopping hub of Chennai, to Perungudi, located at IT corridor,

The revised structure will see him pay just Rs 155 for the same distance, said the company in a press release.

"We are hoping this price drop creates more accessibility to people in the city. Higher demand also means more trips for our partner drivers, and increased earnings for them." said Bhavik Rathod, General Manager - South & West (India) in a release.

While pricing is a science, every city is different: different economic circumstances; different regulations; different competition.

"We've learned over the years that we do best when we test new things. With each new test-small or large-we learn more about the choices riders make, and how those choices impact earnings for drivers," he added,

"Our goal for 2016 is simple: better, smarter way of getting from A to B that saves riders money and increases earnings for drivers," said Rathod.