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You must have by now heard about Ola and Uber planning to raise their fares. This comes as real bad news for all the commuters who had started relying heavily on Ola and Uber taxis for their daily commute, owing to their economical pricing over the exorbitant fares charged by local taxis and autos. However, it seems commute is going to be a big problem all over again. 
 
Both cab aggregators have announced they are increasing their prices in the lowest category of cabs - the bracket used mostly by the middle and upper- middle class commuters. 
 
In Delhi, where Ola was charging Rs 6 per km apart from the base fare of Rs 40 for its Micro cabs, it will now be charging almost double - Rs 12 per km after the first 20 km. 
 
Same is the case with Uber. In Delhi for instance, an UberGo commuter will now have to pay Rs 12 per km after the initial 20 km against Rs 6 per km they were paying before. 
 
In Pune, the cost has been fixed at Rs 15 per kilometre for UberGo rides beyond the first 15 km. For Vizag it’s Rs 12 per kilometre after first 15 km and for Kolkata, it is Rs 12 per km after first 10 km. 
 
Similarly the Ola commuters in Bangalore would also need to shell out Rs 12 per km as compared to Rs 6 all through the journey earlier. 
For Chennai, Hyderabad, Ahmedabad, Kolkata, the fare scheme for Ola Micro is same as Bangalore. 
 
Both Ola and Uber have taken this move to earn profits, as per the news reports. However, this price war also poses the right opportunity for rivals like Meru Cabs to grab their share in the market. 
 
Interestingly, Meru is already giving discounts to customers. It has recently introduced Exactometer, a system where the rider needs to pay exactly the fare estimated before the start of the trip, to counter the disruptive fare rates of Ola and Uber. 
 
It remains to be seen how this steep fare hike will go down with customers, and who really will have the last laugh.

With fares almost
doubled, riding an Ola or Uber will no longer be your cheapest bet

BANGALORE: The fight to win over the Indian taxi passenger has intensified with aggregator Olacabs and cab hailing app Uber slashing prices by a fourth in Delhi—a development that is likely to force rivals to follow suit. 
 
While Ola has cut rates in its lowerend car business—Ola mini—to Rs 10 /km, Uber has cut prices for its premium segment Uber BLACK. Separately, the San Francisco-based taxi hailing app also announced that it will be launching its affordable ride service UberX in three more Indian cities: Mumbai, Chennai and Pune. “We are pushing our efficiency system to the maximum,” said Shailesh Sawlani, general manager of Uber in Mumbai. "We see this as a daily commute option for our riders and plan to maintain these prices if customers ride with us as much as we anticipate." 
 UberX Mumbai fares are Rs 15/km with a minimum base fare of Rs 50 and total minimum fare of Rs 125. The latest moves come after Uber cut its prices in Bangalore by 25% last month. Ola also reduced fares to Rs10/km for its <keyword id="2210965" type="UNKNOWN" weightage="60" keywordseo="Ola-Mini">Ola Mini</keyword> service in the Garden City. “We have been able to optimise our inventory,” said Pranay Jivrajka, vice president of operations at Olacabs. 
 
According to industry estimates, taxi companies are struggling to keep pace with the rising demand and on average cannot accommodate a fifth of the bookings. To address this problem Ola said it will increase the number of cabs available on its mobile app by about 35% to 3,200 in Delhi alone. Ola’s total fleet size is about 15,000. 
 
“These price cuts are just a starting point to acquire customers and establishing the brand image till the time you hit a critical mass,” said Arvind Singhal, chairman of Technopak. “At Rs 10/km Ola is making losses on each Ola Mini ride,” said a source directly familiar with the matter. Same is the case with Uber, according to another source. Uber’s price drop in Bangalore is, however, for a limited duration. 
 The company has not specified the timeframe. Other competitors like TaxiFor-Sure are focussing on discount codes to expand the customer base instead of cutting prices. “We keep doing event-related promotions and offer discount vouchers from time to time,” said Aprameya Radhakrishna, founder and chief executive of <keyword id="1428790" type="COMPANY" weightage="80" keywordseo="TaxiforSure">TaxiForSure</keyword>. 
 
“Till the time, taxi aggregators will not face pressure to turn profitable, the freebies will continue,” said Jaspal Singh, cofounder of Valoriser Consultants, which provides market research services for transportation companies. “These companies are looking to build valuation by expanding geographic reach, recruiting more number of drivers and attracting bookings to increase revenue.” 
 However other aggregators like <keyword id="108722" type="PERSON" weightage="80" keywordseo="Meru-Cabs">Meru Cabs</keyword> and Savaari cabs feel that price cuts is not sustainable long-term. “Meru does not believe in price wars,” said Siddhartha Pahwa, CEO of MERU Cabs. “Consumers will not take a cab because it’s cheap but for its reliability, safety and professional service.”

Win For Customers as Taxi Companies Like Olacabs, Uber Cut Fares In Delhi, Others May Follow

<keyword id="1042120" type="PERSON" weightage="100" keywordseo="Uber">Uber</keyword> has launched its low cost <keyword id="160739" type="UNKNOWN" weightage="60" keywordseo="cab-service">cab service</keyword>, <keyword id="2604816" type="UNKNOWN" weightage="100" keywordseo="UberGo">UberGo</keyword>, in India today. With comparatively affordable fare, UberGo will lock horns with <keyword id="6362049" type="UNKNOWN" weightage="60" keywordseo="Ola-Cabs">Ola Cabs</keyword>, TaxiForSure and other domestic cab services. The company said that the fare will be similar to that of an auto. 
 
UberGo has roped in hatchbacks like the Toyota Etios Liva, Maruti Suzuki Ritz, Tata Indica Vista and Maruti Suzuki Swift. As an introductory offer, it is giving a discount of 25%. It will charge Rs 30 as base fare and additional Rs 9 per km and 75 paise per minute. The minimum fare would be Rs 60. 
 
The company has launched this service in 10 cities: Mumbai, Delhi, Bangalore, Hyderabad, Chennai, Pune, Jaipur, Ahmedabad, Chandigarh and Kolkata.

UberGo Launches Low Cost
Cab Service In 10 Indian Cities

Gone are the days when you had to contact the local travel agency to get a cab or hail one off the road or the neighborhood taxi stand. The proliferation of radio cab services across several major cities in India has allowed seamless booking of cabs anytime and anywhere over a call, and now through smartphone <keyword id="6354741" type="UNKNOWN" weightage="20" keywordseo="Apps">apps</keyword>. 
 
Uber 
 
The San Francisco-based transportation network company prefers to position itself as a technology company that offers mobile apps to connect passengers with drivers of vehicles for hire and ridesharing services. 
 The service was recently launched in India, and offers two tiers of cars for hire – UberBLACK and uberX – appealing to a broader cross-section of the market. The service, which has grown to 10 cities, is already making India the biggest market for Uber outside of the <keyword id="6356955" type="COUNTRY" weightage="20" keywordseo="united-states">United States</keyword>. 
 You need to sign up using the app with your credit card (some debit cards work too). The app shows the estimated time of arrival (ETA) of available cars around you. Once you book it, you can track the reserved car’s location on a map and contact the <keyword id="6366401" type="POSITION" weightage="20" keywordseo="Driver">driver</keyword> as well. After the ride, the amount is debited from the linked card and you don’t have to pay any cash to the driver. The app also allows ridesharing, so two friends sharing a ride can split the fare between two seamlessly. 
 
Uber is a great way to ‘hail a cab’ via an app. But you cannot book one in advance, and that sometimes is a concern, for example: you don’t want to leave a booking till last minute for a 4 am flight. 
 
Meru Cabs 
 Meru Cabs is one of the most popular and earliest radio cabs service in India. The fleet service provides services in seven cities - Mumbai, Delhi NCR, Hyderabad, <keyword id="6354321" type="CITY" weightage="20" keywordseo="Bengaluru">Bengaluru</keyword>, Jaipur, Ahmedabad, and Chennai – with two fleet levels, Meru and Meru Plus. 
 Unlike Uber, the Meru Cabs app is only needed for booking the cab. Once the cab has been booked and you’ve contacted the driver, you don’t need the app for the ride. Of course it’s good to have to check out route details and share <keyword id="154361" type="PERSON" weightage="20" keywordseo="feedback">feedback</keyword>, but it’s not required. The meter is available in the car and you need to pay off the driver at the end of the trip. 
 
Also, the app allows you book a cab for a trip right away (within 35 minutes) or in advance beyond 35 minutes for up to 3 days. You can also check out you booking history from within the app. 
 
Mega Cabs 
 
Similar to Meru Cabs in service and app experience, Mega Cabs is also one of the early radio cabs service in the country. The only difference is that Mega Cabs does not have fleet/car options, and has a unified fare. 
 With presence in six cities – Delhi NCR, <keyword id="6354925" type="COMPANY" weightage="20" keywordseo="Kolkata">Kolkata</keyword>, Bangalore, Chandigarh, Amritsar, and Ludhiana – the company claims to be India’s largest taxi service network. 
 
Olacabs 
 
Ola is quite simply the Indian Uber and has quickly grown to serve 10 cities already. Modelled on the latter, Olacabs does not own its own fleet and partners with car rental services making their cars for hire available through the app. Like Uber, there are two fleet levels, sedan and mini, and even the referral credit is the same Rs 300! 
 
Of course, the Indian company takes care of lack of penetration of credit cards in the country. You can recharge your account to keep ‘Ola Money’ in your account for frequent payments, or pay cash to the driver at the end of the trip. Also, my only gripe with Uber is taken care of as you can make a booking in advance as well. 
 
TaxiForSure 
 The latest entrant in the market, TaxiForSure, intends to bring affordable <keyword id="160739" type="UNKNOWN" weightage="20" keywordseo="cab-service">cab service</keyword> to the masses, with fares that are slightly less than the options above. Available in Bangalore, Hyderabad, Chennai, Delhi NCR, Ahmedabad, and Baroda, the service offers the option of a hatchback or sedan in most cities. 
 
Like other services, you could book a cab for a trip right away or make a booking in advance. However, the ‘right away’ is not clearly defined and there’s no way to specify an exact time. If you are making an immediate booking, you could be offered a cab in the next ten minutes or an hour later. 
(Image: Uber)

Book A Cab In India With These Slick Apps On Your Smartphone

Bengaluru Municipal Transport Corporation (<keyword id="6371543" type="COMPANY" weightage="100" keywordseo="BMTC">BMTC</keyword>) seems to have learnt a lesson or two from cab aggregators <a href="http://www.businessinsider.in/small-business/two-new-apps-to-take-on-ola-and-uber-in-ncr/articleshow/57788204.cms">Ola and Uber </a>in order to retain new customers and attract new ones. 
 
The public transport service is all set to reduce fares for its AC buses while also introducing flat rates on some routes like Kempegowda International Airport, three BMTC officials. 
 
Also read: <a href="http://www.businessinsider.in/you-may-find-it-difficult-to-opt-for-carpool-in-bengaluru-heres-why/articleshow/56889041.cms">You may find it difficult to opt for carpool in Bengaluru. Here’s why</a> 
 
While it would decrease the minimum fare from Rs 15 to Rs 10, it would also make cuts in rates for successive stages, which fall at roughly two kms or three bus-stands. 
 
Talking of non AC buses, there would be no change in the minimum ticket price, but for the second stage, the price would most likely drop to Rs 10 from Rs 12. There is no plan to change the fare for successive stages of non AC buses, or daily and monthly passes. 
 
Also read: <a href="http://www.businessinsider.in/four-member-mounted-patrol-will-now-guard-bengaluru-streets/articleshow/57873068.cms">Four-member mounted patrol will now guard Bengaluru streets</a> 
 
There have been several demonstrations by Bengalureans regarding reduction in these fares and increase in BMTC’s fleet, given that <a href="http://www.businessinsider.in/this-is-what-paytms-new-office-in-bengaluru-looks-like/articleshow/57794554.cms">Bengaluru</a> ranks second only after Mumbai when it comes to public transport fares. 
 
Also read: <a href="http://www.businessinsider.in/shout-out-to-indian-cities-look-what-bengaluru-is-doing-to-fight-pollution/articleshow/57750358.cms">Shout out to Indian cities! Look what Bengaluru is doing to fight pollution</a> 
 
(Image source Automotive Telematics in India)

Bengaluru public transport service takes cue from Ola and Uber; slashes fares

After guidelines issued by the <keyword id="168381" type="ORGANIZATION" weightage="20" keywordseo="ministry-of-road-transport">Ministry of Road Transport</keyword> appeared to impact the business of the US-based taxi-hailing firm <keyword id="1042120" type="PERSON" weightage="20" keywordseo="Uber">Uber</keyword> in India, the company has now decided to take help of social media and online petitions. 
 Known as the <keyword id="3114129" type="UNKNOWN" weightage="20" keywordseo="City-Taxi-Scheme-2015">City Taxi Scheme 2015</keyword>, Uber has launched this campaign against Maharashtra’s draft rules for cab services. The campaign also looks forward to officially communicate its views to the government on the proposed rules. 
 
Shailesh Sawlani, Uber's general manager for Mumbai, says, "We feel it is critical for the people of Maharashtra, who have for years suffered in silence with poor quality transportation, to stand up against these regressive regulations and make their voices heard." 
 
Ola, on the other hand, prefers to directly get in touch with the government officials to resolve stalemates, according to some reports. Earlier, Ola had stated that "We work with authorities at all levels, be it central and state to resolve issues.” 
 
Uber, in the past as well, has taken help of online platform to fix issues with the government. In a similar move, Uber launched a campaign in January this year after the Delhi government banned its services following an alleged rape of a passenger by one of its driver partners. 
 
The company ran a campaign on social networking platform twitter with hash-tag #BringBackUber. Moreover, it also launched online petitions that received nearly 8,000 applications. The case, however, is now in court. 
 
Up until now, the petition in Mumbai has received around 24,000 online signatures. 
 
According to the draft rule issued by the Department of Home under Maharashtra government, a cab service licensee should have a fleet of 1,000 taxis to 4,000 taxis. Additionally, fare charged by the cabbies would be prescribed by the state transport authority. 
 
The conditions are not acceptable to Uber along with a proposal that asks its taxi drivers to maintain a feedback register and receipt printers. 
 
Sawlani also added that “The proposed scheme is a clampdown on consumer choice and freedom. It is equally important for commuters to let the government know that this scheme does not have smart solutions nor their interests at heart.” 
 
Turning down such online campaigns, a Delhi-based lobbyist for transport firms says, "The online petition in Delhi was not very effective mainly because of the timing, as it was done after the rape case. And second, there was a petition to change an existing law, unlike in Mumbai where comments are invited. Cab companies should work with authorities. It is not possible to settle all issues through the judiciary."

Here’s what Uber is doing to challenge the government’s guidelines

An official from the <keyword id="6404450" type="ORGANIZATION" weightage="100" keywordseo="Ministry-of-Road-Transport-and-Highways">ministry of road transport and highways</keyword> has told <a href="http://economictimes.indiatimes.com/small-biz/startups/states-to-take-call-on-digital-meters-for-ola-uber-taxis/articleshow/53494991.cms">ET</a> that the power to decide whether cabs operated by apps like <a href="http://www.businessinsider.in/Ubers-merging-with-Didi-Chuxing-in-China/articleshow/53490542.cms">Uber </a>and <a href="http://www.businessinsider.in/Ola-has-done-something-which-will-make-it-way-ahead-of-Uber-Find-out/articleshow/53488024.cms">Ola </a>should use digital meters or GPS to calculate fares will be given to the state governments, which can choose either rule for their states. 
 
"Since transport is a concurrent subject, we have left it to the states to decide. The ministry is in favour of all solutions that facilitate commuters," the official said, adding that they have received several suggestions on transport reforms, one of them being making digital meters mandatory, since GPS readings vary, depending on mobile data availability and strength. 
 
Also read: <a href="http://www.businessinsider.in/Ola-and-Uber-maximum-fares/articleshow/52865453.cms">Centre asks states to cap the maximum fares Ola and Uber can charge</a> 
 
It’s because of the rising business of <a href="http://www.businessinsider.in/Uber-and-Ola-new-surge-pricing/articleshow/52953940.cms">Uber and Ola</a> that black-and-yellow taxis and auto-rickshaws are left with no business, which has forced them to knock the government doors for justice. 
 
Also read: <a href="http://www.businessinsider.in/Mumbai-to-limit-Ola-and-Uber-operations/articleshow/53417696.cms">Maharashta might limit Ola and Uber operations in Mumbai</a> 
 
In Karnataka, it has been made mandatory for cabs to operate with digital meters that can print receipts. 
 
In New Delhi, even though all cabs come with digital meters installed since it’s necessary for registration, they use GPS to calculate fares, which the ministry thinks is violation of the law. 
 
<a href="https://ictgediminas.files.wordpress.com/2012/11/20121020_224344.jpg">Image source</a>

States to decide if Ola and Uber should use digital meters or GPS to calculate fare

Leading cab-aggregator app <keyword id="1042120" type="PERSON" weightage="100" keywordseo="Uber">Uber</keyword> has said that its riders in the US and in some parts of India will now get to see 'upfront fare', so that they can know how much their ride is going to cost. 
 
The upfront fare will be calculated based on the distance, expected travel time, traffic situation, surge and tolls wherever applicable. 
 
The move will also help the US-based firm address ‘surge pricing’, its only weak spot, which has earned it quite some wrath from users and governments alike. 
 "We moved to upfront, per trip fares--just like airlines and hotels--two years ago when we launched <keyword id="6591085" type="UNKNOWN" weightage="100" keywordseo="UberPool">uberPOOL</keyword>... So in April, we began slowly introducing upfront fares for regular uberX trips in cities across the US and more recently in India, with more to follow," said a <a href="https://newsroom.uber.com/upfront-fares-no-math-and-no-surprises/">blogpost </a>from Uber product managers Arundhati Singh and Dennis Zhao. 
 
In India, Uber users from the cities of New Delhi, Kolkata, Mumbai, Hyderabad and Chennai have already started seeing the new upfront fares, and it would take the company a few months to roll out the features globally. 
 
The new feature would ask the riders to enter their destinations, so that Uber can calculate the fare in advance and reflect it before bookings are done. 
 
"Knowing how much a ride will cost in advance is clearly something riders appreciate: today uberPOOL accounts for over 20 per cent of all rides globally. And we now want more riders globally to benefit from this feature," the blogpost said. 
 
<a href="https://qzprod.files.wordpress.com/2016/05/uber-person-phone-e1462398390533.jpg?quality=80&amp;strip=all&amp;w=1600">Image source</a>

Surge pricing no more! Uber rolls out 'upfront fares' in US and some parts of India

New Delhi, Jan 24 () Uber has introduced the in-app tipping in India to help its driver-partners increase their earnings from the platform, a feature that the ride-hailing platform had introduced in the US over two years ago.
 According to sources, the US-based ride hailing platform started piloting the feature in India in Mumbai two months ago and has now rolled out across more than 50 cities.
 The feature - currently available to riders paying through Paytm wallet - will be available for rides taken in cabs, autos and bikes (UberMoto) on the platform, they added.
 One of the persons said during the pilot phase, it was found that riders had tipped Rs 25 on an average.
 When contacted, Uber India South Asia head of city operations Prabhjeet Singh said: "Driver partners are at the heart of everything we do at Uber and we are always looking for opportunities to showcase both respect and greater appreciation for them".
 "Every year riders in India reward hundreds of thousands of driver partners with 5-star ratings. Uber's new tipping feature now enables them to also say thanks to driver partners who deliver exceptional service," he said in an e-mailed statement.
 After the completion of a ride, passengers paying through Paytm wallet are given the option to tip the driver-partner. The four options shown are Rs 25, 50, 100 and 'enter custom amount'.
 Driver-partners keep 100 per cent of the tips for rides. Riders can go back to previous trips on the app to add a tip.
 Ride-hailing platforms like Uber and Ola charge the driver-partner a commission on the trip fare, while offering certain incentives to drive for the platform. There have been reports of driver-partners quitting these platforms as incentives have dwindled over time.
 Uber and its rival, Ola have pumped in millions of dollars into marketing and promotions, offering incentives for driver partners as well as subsidising trips for riders. SR SHW
SHW

Uber brings tipping feature for driver-partners in India

This summer, commuters in the NCR, willing to ditch metros and buses, will have several choices to book their cabs. Apart from <a href="http://www.businessinsider.in/heres-who-is-benefitting-from-ola-uber-drivers-strike/articleshow/57187851.cms">Ola and Uber</a>, they will have two new cab aggregator apps. This would also benefit them in terms of money, owing to the price war between these apps. 
 
Also read: <a href="http://www.businessinsider.in/these-women-ola-auto-drivers-are-changing-Indian-roads/articleshow/57539709.cms">These Women Ola Auto drivers are changing Indian roads</a> 
 
Cabby, the cab aggregator app to be launched today, has been developed by Sahil Arora, a seventeen-year-old school dropout from Gurgaon. The app will have 25,000 operational cabs in NCR, following which it would move to <a href="http://www.businessinsider.in/bengaluru-feel-relieved-as-ola-anduber-drivers-call-off-strike/articleshow/57221582.cms">Bengaluru</a>. 
 
Also read: <a href="http://www.businessinsider.in/online-cab-players-in-2016-completed-nearly-half-a-billion-rides-with-250-y-o-y-growth-in-india/articleshow/57273938.cms">Online cab players in 2016 completed nearly half a billion rides with 250% y-o-y growth in India</a> 
 Cabby would charge a base fare of Rs 37.50 for the first 2 km, followed by Rs 12.5 per km. Arora told ET that this is actually very competitive, and the fare would be lesser than what <keyword id="6354720" type="PERSON" weightage="100" keywordseo="Ola">Ola</keyword> and Uber charge. 
 
Also read: <a href="http://www.businessinsider.in/are-ola-and-uber-actually-tryingto-prove-poor-people-should-never-think-big/articleshow/57475233.cms">Are Ola and Uber actually trying to prove “poor people should never think big”?</a> 
 
The second cab-aggregator app to be launched today is from 74 BC Technologies, operational from <a href="http://www.businessinsider.in/UberMOTO-enters-Gurgaon/articleshow/51603369.cms">Gurgaon</a> where it is known for the bike taxi aggregator Baxi. 
 
Baxi is now launching cab services in seven cities including Delhi, Ghaziabad, Gurgaon, Mumbai, Pune, Chennai and Bengaluru. Acting as a technology provider for the app, it will be available free of cost for cab drivers. 
 
"Baxi will not take any commission from the drivers to use their technology platform," said Ashutosh Johri, co-founder of Baxi and an IIT Delhi alumnus. It would charge a base fare of Rs 50, followed by Rs 9 per km. Having around 1,000 cabs in its fleet, it would also have Re 1/minute wait charges. 
 
(Image source: Level Nine Services)

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