Ola goes micro, to offer rides starting at Rs 50

TIMES OF INDIA

CHENNAI: In a bid to be the cheapest cab operator in the city, Ola has introduced a new category in its operations micro'. With the minimum fare being `50, it could be the equivalent of a short-distance autorikshaw ride one can get in the city.

The new category will have smaller and entry-level cars like WagonR, Datsun Go with a minimum fare of `50.These cars have smaller engines and higher mileage. Ola has also introduced a base fare of `40 for the first time."The meter reads `40 when the trip starts and every kilometre after that will cost `6 with a ride time charge of `1 per minute," said a source in Ola. For example, a 1km trip would cost `46 plus ride time charges but the payable fare would be `50 plus ride time charges, `50 being the minimum micro fare. Ola mini costs `80 for the first 4km and `10km after that.

On the app, the availability of this category is very low.Sources in Ola say this a pilot project. "The demand is very high for the category . We wil scale it up soon," the source said.

In early February, Uber slashed its fares by Rs 2 on both UberGo and UberX cabs. The former costs `6km while the latter is available at `7km UberGo has a base fare of Rs 30 and a ride time charge of 1 km. Other cheap options in the city include Taxi For Sure (TFS), which is owned by Ola It has a minimum fare of `59 for the first 3km and `8km af ter that. It has a higher ride ti me charge of `1.5km though Ola introduced two-whee ler services in Bengaluru charging `2km with a mini mum fare of `30. The compa ny , however, declined to com mit a similar service in the city.