Chennai: Taxi aggregator Ola Cabs on Thursday cut the fares for two categories Mini and Sedan in Chennai with immediate effect.

The fare reduction is in the Mini and Sedan category.The fares have been reduced from Rs 12 per km to Rs 10 for Mini category and from Rs 16 per km to Rs 12 per km for it Sedan category, Ola Cabs said in a statement.

The base fare was also reduced from the current Rs 120 for the first five km to Rs 99 for first four km. The base fare for Mini was also reduced to Rs 99 for the first five kilometres. Currently Ola Cabs serve 13,000 cars across three categories Mini, Sedan and Prime.

This price revision is possible since we have been able to achieve efficiencies from the scale of operations in the Chennai.

"While drivers continue to make more revenue through better utilisation and more paid runs, we are passing on the benefits of this scale to customers as well with this price revision", Ola, Business Head-Tamil Nadu, Ravi Teja said.