Online personal transport aggregator, Ola, today announced a cut in fares of its mini and sedan category cabs in Hyderabad and Chennai, stepping up pricing competition among the cab services.
In Chennai, the fares have been reduced to Rs 10/km from Rs 12/km for the Mini category and from Rs 16/km to Rs 12/km for its Sedan category.
The base fare has also been reduced from Rs 120 for the first 5 km to Rs 99 for the first 4 km for sedan and for mini it is Rs 99 for the first 5 km.
Chennai currently has over 13,000 cars across the three categories viz., Mini, Sedan and Prime on its platform. Estimated Time of Arrival (ETA) of cabs in Chennai has reduced to as low as 7 minutes which in turn has minimised the number of dry/ unpaid trips for drivers.
Meanwhile for Hyderabad, the prices have been reduced from Rs 14/km to Rs 12/km for the Sedan category and from Rs 10/km to Rs 9/km for its Mini category. The base fare for sedans has also been reduced from Rs 150 for the first 6 km to Rs 100 for the first 5 km and for minis from Rs 100 for first 5 km to Rs 80 for the first 4 km, Ola said in a press release.
“This price revision is a result of increased efficiencies from the scale of operations (in the two cities). While drivers continue to make more revenue through better utilisation and more paid runs, we are passing on the benefits of this scale to customers. ” Ravi Teja, business head- Telangana at Ola said.
Hyderabad currently has over 12,000 cabs on Ola platform across different categories The number of cabs in Hyderabad has seen a significant surge to cope with the ever-increasing demand of the city as a result of which the average estimated time of arrival (ETA) for cabs is as low as 5 minutes in the city, according to Ola.