Uber cuts fare in New Delhi to take on Ola
Ola is also looking to raise up to $1 billion to take on Uber in the Indian market.
The war amongst app-based taxi aggregators has been a long one and shows no signs of fading out. On Wednesday, San Francisco-based Uber has cut its cab fares in the national capital to take on Ola's budget offering Micro.
Uber notified its customers through an email that its UberGo will now cost Rs 6 per kilometre against the Rs 8 earlier. This is on par with the rate that Ola charges for its 'Micro' taxi services.
The cut in price may trigger off a price war, with the two largest players in the Indian market looking to grab a larger chunk of the pie.
Media reports say that Ola is in line to raise nearly $1 billion to take on Uber, now the world's most valued start-up at $68 billion. Only recently, Uber raised $3.5 billion from Saudi Arabia's Public Investment Fund.
According to the reports, Softbank and Didi Kuaidi that already own a chunk in the Indian taxi aggregator, will also participant in the new funding round.