Ola Cabs cuts prices

Unethical competition,other taxi operators say

With Ola Cabs announcing a fare reduction in its mini-car and sedan category in Chennai on Wednesday, commuters seem happy.

However, some call-taxi operators in the city claim it is unethical competition. According to an Ola spokesperson, the fares have been reduced from Rs.12 a km to Rs.10 in the mini-car category and from Rs.16 to Rs.12 in the 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. Base fare in the mini-car category is Rs.99 for the first 5 km.

“Chennai currently has over 13,000 cars in the mini-car, sedan, and prime categories. Nearly 99 per cent of the bookings are done through the mobile application.

Due to the fare reduction, more customers will book cabs through Ola’s mobile app and due to this, drivers will benefit as the get paid trips everyday,” the spokesperson added.

K. Mohan, a resident of Nanganallur who uses call taxis regularly, said that customers like him will benefit a lot now that the prices are slashed. “The quality of service has to be improved. Some drivers do not come on time,” he said.

C. Ambikapathi, president of the Tamil Nadu Call Taxi Owners’ Association, said he had filed a case against Ola in the Competition Commission of India in New Delhi for ‘predatory pricing’ and ‘unfair trade practices.’

“We do not charge differently during peak hours. Ola is providing incentives to drivers and is keeping the charges very low. This is not healthy competition. They are cheating commuters by manipulating the software,” he added.