Taxi hailing service Ola on Friday announced a fare reduction in its mini and sedan categories in Chennai. The base fare of Rs 99 for the first 5km has been reduced by 20% to Rs 80 for the first 4 km. The per km fare will remain the same, that is, Rs 10 for mini and Rs 12 for sedan category.
However, on applying the code “FIVE”, customers can ride in a mini/sedan for as low as Rs 5/km. This is the second time in a span of two months that the company has reduced its fares.
Ravi Teja, business head-Tamil Nadu at Ola, said, “This price revision is possible since we have been able to achieve efficiencies from the scale of operations in Chennai. The cut will further boost demand for our service in the city and will be extremely relevant for taking short trips. Instead of burdening themselves by driving in crazy traffic within the city, we are confident a lot of our customers will now just take an Ola cab for shopping, eating out and partying.”
Ola currently has over 20,000 cars across its three categories such as mini, sedan and prime in Chennai. The estimated time of arrival (ETA) of cabs in Chennai has been reduced to as low as 5 minutes. This has in turn minimised the number of dry/unpaid trips for drivers.
The company had recently conducted a driver mela in the city to enable driver entrepreneurs to buy cars at lower than market prices. The mela brought together popular car manufacturers, including Tata Motors, Maruti, Toyota, Chevrolet, Mahindra and financiers like SBI and Shriram Transport Finance Company, under one roof. Over 2,000 drivers participated in the 3-day fair and booked hundreds of cars.