There is no scope of ending the price war between Uber and Ola in the Indian market. A couple of moths ago, Ola introduced “Ola Micro”- the cheapest option for commuters which has been offering a ride at Rs. 6 per Km. It turns Ola’s fortune on and “Ola Micro” has gone popular in a short time. Another competitor- Uber has been watching it closely, and finally it slashed down its price to match with the arch rival- ola!
Uber Go, which is the lowest charged option in Uber, changed its rate to Rs. 6 per Km from its current rate Rs. 7 per Km. A new price war has begun to grab maximum market share!
Uber has raised fresh funds of $3.5 billion from Saudi Arabia’s Public Investment Fund. It has announced that the funds would be used heavily in the Indian market. India has become its one of the biggest market, and it does not want it to go in its rival’s hand in any way.
Uber will burn its fresh funds in the Indian market, and the start of lowering down the price is the glimpseof it. On the other hand, Ola is in talks with investors for fresh funds amounting $300- $400 million to get a cushion for this upcoming price battle!
Uber is present in 27 cities while Ola has spread its wing into 102 cities but if wee look close at the revenue graph. First, 8-10 cities are the sources of revenue’s lion portion. Uber may emphasize its service in these top revenue generating cities rather spreading the services in some other tier two cities.