Uber pilots autorickshaw services in Chennai to take on Ola

Ride-hailing major Uber is all set to launch its autorickshaw services in Chennai soon. The ride-hailing firm has been for the first time piloting the service in the city.

“We are committed to provide affordable and convenient services to our customers and are also working together with local communities in building mobility in the city,” Uber spokesperson had told ET.

The cab aggregator had also relaunched its AUTO service in Bengaluru and Pune after shutting down the offering for almost two years.

The firm did not share the exact date of the launch. However, the drivers had begun aggregating on the Uber plan from February 23.

In Chennai, the ride-hailing platform will face the challenge from already existing players such as Ola, which is dominating the category and local autorickshaw owners.

To attract more drivers, Uber has made payments based on auto meter rates and an additional amount of Rs 30 per trip is giving to the drivers. While Ola had also started the same offering but now they are getting a commission from the drivers.

Uber also offers an incentive of Rs 2000 to complete 60 trips in two weeks. Whereas, Ola offers incentives of Rs 60 for 4 trips.

Also Read: Uber makes re-entry into autorickshaw segment, to ply in Pune, Bengaluru from next month

In India, Uber has presence in 29 cities.  The San-Francisco based company witnessed a rise of 11 per cent in gross bookings, which reached $9.71 billion in the period that ended in September last year.

In the second quarter, the total booking was of worth $8.74 billion. Net revenue grew 21 percent to $2.01 billion in the third quarter from $1.66 billion, according to Uber.

In January, Softbank invested more than $7 billion in Uber for a 15 percent stake in the ride-hailing startup. The investment deal includes both a direct investment in the company and also a secondary transaction, buying out existing shareholders.

Meanwhile, CEO of Uber, Dara Khosrowshahi, on his recent two-day trip to India said that the firm will continue going aggressively in India.

The re-entry of Uber in auto vertical ensures a good time for users and drivers as it’s likely to engage in discounting and incentive battles with Ola. The Uber’s mobile app has not been integrated with AUTO option yet.