The price wars continue in India, as Uber Delhi cut its rate to just Rs. 6 per kilometre, the same as Ola Micro, which is still being advertised on television as the cheapest cab you can get. Starting from June 13, UberGo fares in Delhi have been brought down to Rs. 6 per kilometre, down from Rs. 8 per kilometre. However, it's worth noting that Uber's fares are not the same in every city - as Gadgets 360 had earlier reported, Uber was charging Rs. 6 per kilometre in Chennai already, and Rs. 7 per kilometre in Bengaluru.
An Ola Micro charges Rs. 6 per kilometre with a minimum fare of Rs. 40, and charges Rs. 1 per minute. UberGo has matched these terms in Delhi. Now, you can go from Rajiv Chowk to the airport for Rs. 185, or from Saket to Cyber City for Rs. 195, according to Uber.
This announcement comes in the wake of fresh funding for Uber - the company raised $3.5 billion dollars, and said it plans to spend a significant amount of this money on India.
Rival Ola has been expanding in a number of different directions, while Uber has been facing legal troubles in India, and around the world, with cases in France, in Germany, the US, and more.
This rate cut shows that despite everything, Uber retains the financial muscle to compete at a local level globally, but it raises questions about how sustainable these rates really are.
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