Customers in Jodhpur and Udaipur will see a reduction of 22%, while users in Mangalore and Trivandrum will see a price cut of 20% and 18% respectively. Ajmer is also getting an 18% price cut, with Vizag prices down by 16%, and Pune's by 15%. The move would bring the cost of UberGO down to as low as ₹5 per kilometer in cities like Vizag, Nagpur, Indore and Ahmedabad. It is a strategic move, as Ola's recent Micro service lets you book a cab for ₹6 a kilometer.
Uber is also exploring two-wheelers with the UberMOTO service, and Ola has gone a different route with its e-rickshaw initiative. The goal with both is to cut down on costs and bring in new customers.
Meanwhile, Karnataka has issued a ban on surge pricing, and it remains to be seen how the move affects Uber and Ola's strategy. Both services rely on surge pricing for a bulk of their revenue, and curtailing that may led to an eventual increase in base prices in the state. We'll have more to share on that front as the ruling goes into effect.