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Home / Companies / News /  Uber expands UberX service, cuts UberBLACK price in New Delhi

Bangalore: Google Inc.-backed start-up Uber Technologies Inc. will expand its lower-cost service UberX to three more cities in India — Mumbai, Chennai and Pune on Monday, and cut down the price of its higher-end service UberBLACK by 25% in New Delhi.

UberX will offer a base fare of 50 in Mumbai and Chennai and 30 in Pune. There are also additional charges per minute and per kilometre that will vary based on the city. Vehicles under UberX include mid-range sedans such as Toyota Etios and Maruti Swift DZire.

“UberBLACK launched in Chennai in February and over the last two months, it has seen a significant demand. With UberX, we will be able to provide affordable and cheaper transportation and I believe it will do quite well. UberX comes out to be 25-40% cheaper than UberBLACK depending on the distance," said Santhosh Sarangan, general manager at Uber in Chennai over phone. UberX will provide a promotional 10% off on rides in Mumbai and Chennai.

Uber’s move comes amid uncertainty over its payment model. The Reserve Bank of India (RBI) last month had said that companies cannot allow customers to pay with their credit cards without a two-step authentication process. So far, customers had to enter just their credit card details at the time of signing up with Uber. Every ride was automatically charged to the card without any further verification. RBI has given all such businesses time till 31 October to comply with the regulation. Uber has so far not disclosed how it plans to overcome this hurdle.

In late June, it launched its low-cost brand UberX in Bangalore, New Delhi and Hyderabad that directly competes with local rivals. Two weeks back, competitor Olacabs also expanded its cheaper service Ola Mini to three more cities, making it available in five Indian cities.

Uber began its India operations in August last year with its high-priced service UberBLACK, that it provides in 10 cities now. The company started its global operations in 2009 and is present in 207 cities across 45 countries.

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