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Ola slashes cab fares in Delhi, Chennai and Hyderabad

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Chennai/hyderabad | Updated: July 3, 2015 10:07:33 AM

Continuing the price war with its peers, taxi-hailing app Ola, on Thursday, announced a fare cut in Delhi, Chennai and Hyderabad.

Ola cabsIn Delhi, Ola slashed the price in the sedan category from Rs 14/km to Rs 11/km

Continuing the price war with its peers, taxi-hailing app Ola, on Thursday, announced a fare cut in Delhi, Chennai and Hyderabad. In Delhi, it slashed the price in the sedan category from Rs 14/km to Rs 11/km. The base fare has also been reduced from Rs 150 for the first 6 km to Rs 100 for the first 4 km. The company said it is passing on the benefits of high scale of operations to its customers.

“This price revision has been possible since we have been able to achieve efficiency from the scale of operations. While drivers continue to make more revenue through better utilisation and more paid runs, we are passing on the benefit of this scale to customers,” the company said in a statement.

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While the company reduced the price only in sedan category in Delhi, it slashed charges of sedan and mini cars in Hyderabad and Chennai. Currently, Ola has 20,000 cabs in Delhi, and 12,000 and 13,000 in Hyderabad and Chennai, respectively.

Competition in the taxi-hailing service has heated up with companies having a go at one another on the pricing front. In May, Chennai-based Fast Track had approached Competition Commission of India (CCI) regarding Ola’s alleged predatory pricing practice.

Subsequently, CCI took cognisance of the matter and ordered a detailed probe on Ola.

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