Even in the face of several regulatory hurdles such as ban on surge pricing, carpooling and drivers strikes towards the end of the year, cab aggregators Ola and Uber managed to increase their number of rides fourfold in 2016 as compared to 2015.

According to a report by consulting firm RedSeer Consulting, the two market leaders together delivered 500 million rides in 2016 as against 130 million rides in 2015.

Regulatory hurdles and demonetisation did not have any major effect on these companies and they witnessed 20% increase in non-cash transactions.

In the beginning of the year, both the companies witnessed a 9% growth month-on-month.

“Uber is growing in India by investing in engineering and technology to ensure we continue excelling where it matters, such as delivering the best experience to riders and drivers and ensuring that cars arrive quickly and reliably. We are delighted to see how ridesharing is benefiting riders, drivers and cities across India,” an Uber spokesperson said in response to an FactorDaily email.

Ola did not make any comments till the time of publishing the story.

According to Anil Kumar, CEO of RedSeer, the dynamics of the ridehailing market have changed, and he believes that the business is about price game now. “Consumers are only looking for cheaper options, and that is the only criteria now,” Kumar told Mint.

According to industry experts, Ola’s low cost offering changed the game for it in 2016.

In 2016, Ola introduced Ola Micro, it’s low cost service, to counter Uber’s UberGo, which was launched in 2015. Ola Micro costs Rs 6 per km, whereas UberGo costs Rs 7 km in Bengaluru, Rs 7 per km in Delhi and Rs 8 per km in Mumbai. Earlier in January, Uber increased the fares of UberGo by 50 paise in Mumbai

However, despite Ola’s rates being lower, several daily users of either cab service feel that Uber provides better service and is cheaper than Ola.

According to the RedSeer customer preference index based on a survey of over 3,000 users in more than 12 cities, Ola’s score dropped to less than 60% in Q4 2016 from more than 70% in Q1 2016.

Both the companies are tapping the market aggressively and have rolled out several new services and features for consumers.

Founded in late 2010, Ola had a two-and-a-half year headstart on Uber in the country. The silver lining for Uber is that it’s been growing in line with Ola since the first quarter of last year and has is financially stronger than its Indian rival.

With several top-level exits, Ola has been struggling to raise its next round of fundings, but if it manages to do so, it will back in game.

Meanwhile, Uber sold its China unit to Didi last year, India has become one of its most important markets, which it can’t afford to lose.

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