UberGo Low-Cost Car-for-Hire Service Debuts in India

Uber, the taxi and ridesharing service, on Wednesday launched its new low-cost UberGo service in India. The company claims that the UberGo service is the "cheapest ride in town", saying the price is lower than an auto rickshaw.

The new UberGo service will be available in all cities where Uber offers its services - namely Ahmedabad, Bangalore, Chandigarh, Chennai, Hyderabad, Jaipur, Kolkata, Mumbai, New Delhi, and Pune.

With the UberGo service, the company will be offering chauffeur-driven hatchbacks such as Etios Liva, Maruti Ritz, Maruti WagonR and Tata Indica Vista.

(Also See: Now Book Auto Rickshaws in Bangalore via Ola Cabs)

Announcing the news, Uber on its official blog said, "We are excited to announce the launch of UberGO; a spanking new range of low cost, chauffeur-driven hatchbacks (think Etios Liva and Maruti Ritz) that roll onto the streets of every Uber city in India today. For this launch, drivers are able to connect to the Uber platform using devices provided by our technology partner, Huawei."

The company, to woo new customers, is also offering worth Rs. 400 off on the first UberGo ride. New customers have to download the app and enter promo code "UBERGO-INDIA" to avail the discount.

For UberGo service, the company has fixed different rates for each city. On the official blog, the company also compares UberGo ride fares with auto rickshaw ride fares. "At launch, we're testing the very limits of low pricing with 25 percent off on regular fares. No promo code is necessary, this promotion will be automatically applied to your uberGO rides in Delhi-NCR," Uber adds.

In Delhi's case, Uber claims that a ride from Safdarjung Enclave to Khan Market will cost customers Rs. 90 via auto rickshaw but UberGo will cost only Rs. 85. Likewise, a ride from Vasant Vihar to Cyber City will cost Rs. 215 via auto rickshaw while it will cost Rs. 183 on UberGo.

For UberGo customers in Delhi, the base fare has been fixed as Rs. 40 while the per kilometre distance fare is Rs. 12 and the minimum fare for UberGo is Rs. 80.

Describing the positioning of its three services in India, Uber on its blog said, "Now there's an Uber for your every need; use UberGO for your everyday commute and errands, request an UberX when you have company, and step up to UberBlack when you mean business."

Uber back in June had launched UberX, the affordable car-for-hire service. The pricing of the UberX service differs in respective cities, however, in each case, base fare, fare per kilometre, minimum fare, and cancellation fee was lower than the UberBlack service.

Earlier this month, Uber partnered with Paytm to comply with Reserve Bank of India regulations for credit card payments in India. Uber India had been allowing credit card payments without the mandatory two-factor authentication in India before the partnership with Paytm.