After furnishing details to get permit from the Transport department, app-based cab operator, Uber of the US on Friday announced a new service — Uber Go — which will charge only Rs7 per kilometre, cheaper than auto-rickshaw.

This service will offer commuter rides in hatchbacks like the Toyota Etios liva and Maruti Ritz.

Uber claims that a ride in Uber Go will be cheaper than Delhi auto-rickshaw, which charges Rs8.50 per kilometre.

The Delhi Government, however, has not yet issued the permit to Uber, but just like Ola cabs, it is up and running.

The Transport department had set February 25 as the deadline for Uber to provide necessary details for firm’s application to operate in the national Capital. The authorities, however, issued a ‘deficiency memo’ on January 24 asking it to furnish all details before it as mentioned in the recently introduced ‘Modified Radio Taxi Scheme (2006)’.

Uber has also reduced fares of its Uber Black and Uber X services. Uber X, which is its most popular Staff Keeping Unit (SKU) now costs Rs9/km, while Uber Black is Rs12/km. Uber Black is the premium SKU, which offers luxury cars. It has a base fare Rs25 and charges of Rs7 per kilometre, while the UberX base fare is now Rs40 with charges of Rs9 per kilometre, and the premium UberBlack now has a base fare of Rs60 and charges of Rs12 per kilometre.

Uber India on Friday, announced the fare cut Twitter with hashtag —#UberlovesIndia — that suggests the fare cut could be a emotional appeal to its users so that popular opinion can be turned into its favour. Despite the rape case, the service has proven to be popular in the country as its service is seamless and reliable as opposed to other taxi services.

It has always been competitive in terms of pricing, but now, it is cheaper than even the iconic rickshaws of the Capital. Uber claims that a ride from Connaught Place, which is the central hub of Delhi to the IGI Airport will cost a customer Rs128 using Uber Go.

“You no longer have to stand in queues outside airport & railway stations to get a Taxi OR get drenched during the monsoons hailing an auto. Nothing can beat the fares and the convenience of moving around in an Uber,” Uber claimed in a blog post.\

The Uber cab service was banned in Delhi after one of its drivers allegedly raped a passenger. The incident highlighted that the service was “illegally” operating in Delhi and other parts of the country as it lacked permit to run taxi services. Interestingly, the transport department issued the ban order despite the fact that it was not registered with it and its operation was illegal.

Not only India, several other countries also banned its services.

Uber has also faced stiff competition in Delhi. Ride services like Meru allegedly lobbied against it which led to the RBI ordering it to use the standard two-factor authentication payment system used in the country for online credit card use. OlA cabs, a start-up, which provides a service similar to Uber, has even attained funding from Japanese giant SoftBank.