The carpooling feature, which is still in the beta phase and will be rolled out to select users in Bengaluru, will be made available across 5 cities over the next three months.
The service will be available for an introductory flat fare of Rs 50, Ola said in a statement.
"Ola has introduced the concept of social groups on its app. With groups, colleagues from a workplace and friends from a college can come together to share rides amongst themselves.
Ola said most vehicles see only 33 per cent utilisation of capacities.
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"This will also contribute towards significant reduction of traffic, congestion and pollution in our cities," Ola Share Head Ishan Gupta said.
A maximum of three people can share a cab together via Ola Share. Driver-partners get an option to log into the Share platform, getting instant access to increased revenue of up to 50 per cent, through continuous fulfilment of booking requests, it said.
A user can join multiple groups or simply choose to share a ride with anyone.
Last month, Uber had announced the launch of UberPool, its carpooling service in India. The service is available in beta in Bengaluru.