Faced with stiff competition from domestic players American based Uber has decided to slash its fare by up to 22% in 10 cities in India including Pune and Ahmedabad. Also, effective from Tuesday, 12 April 2016, the base fare of all Uber rides will be reduced to Rs.30 in Indore, while cab rides in Nagpur will cost only Rs 5 per kilometre. Earlier this month Uber had also introduced UberAUTO in Bhubaneshwar and Coimbatore at Rs 3 per kilometre.

In a press release Uber said “We are decreasing uberGO prices by up to 22% making our service even more affordable for you to get where you need to go. But it's also important to note that with increased demand drivers get busier as well”

Below is the list of decrease in rates by city

City

Percentage Price Reduction*

Pune

15%

Ahmedabad

17%

Jodhpur

22%

Udaipur

22%

Ajmer

18%

Indore

9%

Nagpur

9%

Vizag

16%

Mangalore

20%

Trivandrum

18%

 

“With even more affordable fares, we believe Uber can be a viable alternative to people driving their own cars with all the hassle and cost that parking brings,” the press release stated

Uber has been receiving strong competition from domestic players like Ola and this move by Uber is possibly aimed at competing against Ola’s Micro cab service that charges a mere Rs 6 per kilometre. Ola Micro is currently available in 13 cities across India including Bangalore, Delhi and Mumbai.