Tata Nano Taxi to Trigger Price War

Tata Nano TaxiCab operators in India such as TaxiForSure and ola are expected to shortly introduce Tata Nano Taxi as a part of their fleet. The Google Ventures-funded Uber is planning to launch hatchbacks like Indica, Micra and Beat. TaxiForSure can roll out Tata Nano taxi in Bengaluru next week with two hundred cabs at first. This move by major Taxi operators is expected trigger price war and reduce the per kilometer charges.

The cab market has seen fierce competition between Uber, Ola and TaxiForSure. Ola received contemporary funding of $210 million from Japanese web company Softbank. TaxiForSure has raised $50 million in funding from VC corporations Accel Partners, Helion Ventures amongst other.

Companies such as TaxiForSure and Ola have already reduced the prices of their cabs. TaxiForSure charges base fare of INR 49 per kilometer for the first 4 kilometers and for all additional kilometers INR 14 per kilometer is charged. Similarly Ola, now charges a minimum fare of INR 100 for  in initial 5 km in Chennai, 6 km in Bangalore and 4 km in Old Delhi, and Rs 10 per kilometer thereafter.

The highly competitive Taxi market is expected to lower the prices with inclusion of Tata Nano, the cheapest Car in India in their fleet. Giving a tough competition to the Auto Rickshaw prices in India.

Ola is also experimenting its technology with auto rickshaws in India. Ola has started a test run by given smartphones to some Auto Rickshaw drivers to track and receive orders,  similar to booking a cab.

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