Ola launches low cost service 'Micro' to counter UberGo

Ola has launched a new service called Ola Micro. It is a low-cost service, priced at Rs. 6/km, and aimed at taking on UberGo - priced at Rs.7/km. 

The Ola Micro will be available in seven cities in India, which includes Mumbai, Delhi, Kolkata, Bengaluru, Chennai, Pune and Hyderabad. The time charges and per kilometre rates are consistent across these cities at Rs. 1 per minute and Rs. 6 per kilometer. The minimum fare is Rs. 60 in Delhi, and Mumbai, Rs. 50 in Bengaluru, Chennai, Pune, and Hyderabad.

By comparison, UberGo has a base fare of Rs. 40, minimum fare of Rs. 50, a per km charge of Rs. 7, and per minute charge of Rs. 1. UberGo has a lower base fare than Ola Micro, which means for a usual two to four kilometre drive UberGo would be slightly less expensive than Ola Micro, while for more than four kilometer Ola Micro would be cheaper.

Ola has also revealed the card models under Ola Micro will include Hyundai Eon, Wagon R and Datsun Go.

Ola also says that it has over 70 percent market share in the country with presence in over 100 cities. Ola Chief Finance officer Rajiv Bansal said that the company is focusing on growing its business rather than making profits.