World renowned cab aggregator Uber has signed a Memorandum of Understanding (MoU) with the Kempegowda International Airport, Bangalore to set up a dedicated parking area and pick up zone for its drivers and passengers. The assigned zone will be called U Zone and Uber will be deploying its executives to assist passengers. It will be like a free door to door service for passengers. Having set a price differential in the industry , Uber will slightly change its strategy and keep Rs 8 per km, regardless of the type of service. The base rate will be Rs 180 , with an additional of Rs 8 per Km, plus Rs 1 per minute and Rs 120 for toll expense.

Users have to select ‘U Zone’as their location once they land at Bangalore Airport and with assistance reach the U Zone to find their cabs.  Online cab service companies need to keep pace with the growing demand in the country. It is very necessary to keep a price differential model and attract customers and forward convenient services. Corresponding to the changes in the industry, many online cab aggregators have come up with developments in their models and strategy.  For instance, Uber was ready to cap its fares at rates fixed by the government, giving up its surge pricing model in the city. It also stopped its UberMOTO bike taxi service in Bangalore to work with the government “to create modern regulations for app-based motorbike services.” Uber plans to re-launch UberMOTO in Bangalore in the future, but does not mention timelines.

A Lot of challenges are faced by online cab service. In a recent case Online cab service Magic Sewa alleged that that Airport Authority of India (AAI) and Delhi International Airport Ltd (DIAL) were giving ‘preferential treatment’ to taxi operators Easy Cabs, Meru and Mega Taxi at the Delhi airport by waiving the Rs 150 entry fee, while imposing it on other cab operators. The designated zones of online cab services are likely to solve this problem to a large extent.