Poll: Will app-based cab services like Ola and Uber lead to the decline of local taxi services in India?

App-based taxi operator Ola on Monday raised $500 million in a fresh round of funding from investment management firm Baillie Gifford, China’s largest taxi hailing service company Didi Kuaidi and existing investors Falcon Edge Capital, Tiger Global, SoftBank Group and DST Global. Though valuation details are not available, the start up is now valued at an estimated $5 billion. (Read more about the funding round here)

Ola’s aggressive marketing strategy not only includes discounts and free rides through promo codes, but also actively wooing customers through features like Ola Café (offering schemes like getting sweets and gift boxes delivered to your doorsteps on festivals) and an independent grocery-ordering app called Ola Store.

Even smarter has been its involvement in sensitive issues like the Chennai floods in which it deployed boats along with professional rowers to rescue people in waterlogged areas. Ola currently has over 275,000 cabs, 75,000 auto-rickshaws, apart from Kaali Peeli taxis and yellow taxis registered on its platform across 102 cities in India.

Cab hailing service Uber is of course the global pioneer in this business. It recently tied up with Healthcare booking platform Practo, in a global partnership that will help people reach doctors easily. (Read more here)

Clearly these taxi operators are fast becoming a reliable mode of transport in the metros, given the ease of use, and the smart pricing policies. For an average person, the price difference between an auto ride and a ride on Ola, Uber or TaxiForSure does not amount to a big sum. And the added comfort adds to their charm.

Will the era of app-based taxi services finally bring to an end the traditional local taxi services in cities like Mumbai and Kolkata, and the auto rickshaws of cities like Delhi?

Take the Mint poll and tell us what you think: