Ola launches Low Cost Micro To Counter UberGo

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Cab aggregator Ola has launched Ola Micro, a low-cost cab service in seven cities in India. They will directly compete with Uber's low-cost service UberGo.

ola launched low cost micro

The per kilometer charges for Ola Micro will be less by Rs. 1 compared to UberGo. The base price, however, is lower in UberGo compared to Ola Micro.

For the first two to four kilometers, UberGo will be slightly lower compared the Ola Micro, post four kilometers, Ola Micro will be a better deal.

Category  Minimum Bill  Extra Kms Charge  Wait Time Charge  Ride Time Charge
Ola Micro  Rs. 40 for first 4 km  Rs. 6 per km  N/A  Rs. 1 per min
UberGo  Rs. 30 for first 4 km  Rs. 7 per km  N/A  Rs. 1 per min

Ola has the presence over 100 cities in India compared to 26 cities Uber is operating. Ola has got funding of $1.3 billion from some of its investors including Japan's SoftBank. Uber has recently committed to invest about $1 billion for its expansion.

Ola has provided categories to cater to different customers like the Prime, Mini, Economy Sedan and the recently launched Micro. Uber provides UberX, UberXL, and UberGo.

The Ola Micro is currently available only in seven cities, Delhi, Mumbai, Kolkata, Bengaluru, Chennai, Pune and Hyderabad. The cars which will operate under Ola Micro are Hyundai Eon, Maruti Suzuki Wagon R and Datsun Go.

Uber Go will be available in Ahmedabad, Bangalore, Chandigarh, Chennai, Hyderabad, Jaipur, Kolkata, Mumbai, New Delhi, and Pune. The cars under this scheme are Etios Liva, Maruti Ritz, Maruti WagonR and Tata Indica Vista.

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