After Ola, US-based Taxi-hailing company Uber has now launched ‘UberHIRE‘ in nine Indian cities that will allow users to hire a cab for up to 12 hours. The service, which saw a successful pilot in Kochi, is being rolled out today in Delhi, Bangalore, Chennai, Mumbai, Pune, Ahmedabad, Vizag and Nagpur, and will be expanded to other cities over the next few weeks.

uberHIRE

UberHIRE is a time-based offering that allows users to make trips punctuated with multiple stop overs, Uber said in a blogpost.

The service is evidently Uber’s answer to its rapidly-growing Indian rival Ola’s rental service, Ola Rental, that launched last year.

The minimum fare on UberHIRE would be Rs 449-649 ($7- $10) depending on the city for two hours and up to 30 kilometers (18.6 miles). And beyond that, riders would be charged at Rs 2 per minute and Rs 12 (17 cents) per kilometer, said Uber in a statement.

Uber and Ola are both burning millions of dollars to keep the cost of rides low for users, while still giving drivers higher payouts per ride. The US company has said it will invest a substantial portion of the $3.5 billion it had raised from Saudi Arabia’s Public Investment Fund into growing its operations in India.
Rival Ola has been struggling to raise fresh funds to ward of the attack from Uber and is looking for new avenues to earn revenues. With the competition in the point-to-point cab market forcing both companies to undercut costs on each ride, they are now looking at alternative means to earn revenues.
Last Monday, the state transport department had instructed both cab-hailing companies to halt their ride-sharing services before Friday, terming them illegal. To counter it, US-based Uber Technologies Inc’s Indian subsidiary started an online petition to gather signatures from members of the public supporting its service.

 

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Ankur Chandra

A software engineer by education, Ankur is go-getter, who leaves no stones unturned to find a solution to a problem. He is passionate about technology and automobiles. And, is a big foodie at heart. Watching cartoons is his favourite off-field indulgence. At KnowStartup, he is an integral part of the editorial team.

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