With Ola Lux, one can book Jaguar for Rs 19 per km

Homegrown urban transport aggregator Ola has introduced luxury cars as part of its service offerings, sensing the potential for the luxury segment in in-city travel.

With the new offering called Ola Lux, users can book luxury sedans Jaguar, Mercedes, Audi, BMW and Toyota Fortuner, among others.

To start with, Ola has launched the service in South Mumbai and will soon expand it to other parts of the city, the company said in a statement. The service will soon be introduced in Delhi and Bangalore also.

The service is available for booking at a minimum fare of Rs 200 and Rs 19 per km. A ride time charge of Rs 2 per minute is also applicable.

"With a growing number of young executives, entrepreneurs and professionals, the need for on-demand luxury sedans is growing in a city like Mumbai. Young adults like the flexibility of not having to drive in heavy traffic, while still travelling in a stylish manner," it said.

The Lux icon will appear on the Ola app when the customer is in the area in Mumbai where the service is offered.

The launch of the service comes less than two months after Ola added electric rickshaws or e-rickshaws on its mobile app with Prime Minister Narendra Modi taking the first ride in Noida.

It also happens at a time when Ola is battling competition from US-based Uber to capture a dominant market share in the fast-growing urban transport space as commuters increasingly look for more affordable and convenient options for their daily commute.

Ola, operated by Mumbai-based ANI Technologies, has been expanding its urban transportation services. It recently shut down hyperlocal delivery app Ola Store and mobile-only food ordering service Ola Café to focus on its core business.

It recently acquired Chennai-based Qarth Technologies Pvt. Ltd, a mobile payments startup.

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