BluSmart, an electric vehicle (EV) ride-hailing firm, has begun rebranding its taxis in Bengaluru as Uber Green, marking an important shift in the way it conducts business. The action is part of a strategic shift by BluSmart from operating a stand-alone service to joining the global taxi services giant as it gradually shuts down its own ride-hailing platform and moves its fleet to Uber’s network. The whole transfer is expected to take place over the next few weeks, and this development is a part of a phased plan that will initially see 700–800 vehicles moving under Uber Green.
BluSmart’s decision to hand over its EV fleet to Uber follows months of financial strain and operational challenges. Once a promising rival in the Indian electric cab market, BluSmart has faced a sharp decline in daily rides and increasing difficulties in sustaining its business independently. The rebranding of its cabs in Bengaluru is the first visible sign of this transition, as the company seeks to remain relevant in a competitive market by leveraging Uber’s extensive platform and customer base.
Financial Struggles and Regulatory Issues Behind BluSmart’s Transition:
BluSmart’s pivot to Uber comes amid mounting financial pressures and regulatory complications. The company has reportedly been burning over Rs 20 crore monthly to maintain operations, with its founders Anmol Singh Jaggi and Puneet Singh Jaggi injecting personal funds alongside external investments to keep the business afloat. However, the situation worsened due to a crisis involving Gensol Engineering, a solar engineering firm promoted by the Jaggi brothers, which faced a debt squeeze and regulatory scrutiny.
The Securities and Exchange Board of India (SEBI) issued an interim order against Gensol Engineering and its promoters for alleged diversion of loans intended for electric vehicle procurement. This development cast a shadow over BluSmart’s operations, as Gensol owned a significant portion of the EV fleet used by BluSmart. The regulatory probe and financial instability led to a sharp reduction in BluSmart’s ride volumes, dropping to less than half of its peak daily rides last year.
In response to these challenges, BluSmart’s shareholders approved a plan to gradually move its fleet onto Uber’s platform, effectively ending its own ride-hailing service. This strategy allows BluSmart to reduce operational costs and risks while continuing to generate revenue by leasing vehicles to Uber as a fleet partner.
Uber Green’s Expansion and BluSmart’s Role in the EV Market:
Uber launched its electric vehicle service, Uber Green, in 2023 with the goal of deploying 25,000 EVs on its platform through partnerships with fleet operators such as Everest Fleet, Lithium Urban Technologies, and Moove. BluSmart, with its all-electric fleet and existing infrastructure, fits neatly into Uber’s plan to expand green mobility options in major Indian cities, including Bengaluru.
By integrating BluSmart’s vehicles into Uber Green, Uber aims to strengthen its position in the growing EV ride-hailing segment while offering customers more sustainable transportation choices. For BluSmart, becoming a fleet partner means offloading the complexities of running a ride-hailing platform and focusing on fleet management and vehicle maintenance.
The transition also involves potential investment talks, with BluSmart reportedly seeking a $15-20 million infusion from Uber. However, the deal’s finalization depends on performance milestones related to the fleet transition. Once fully integrated, BluSmart will earn a share of fares generated by its vehicles on Uber’s platform, while Uber retains its standard commission.
Conclusion:
BluSmart’s rebranding of its cabs as Uber Green in Bengaluru marks a significant turning point for the Indian electric ride-hailing market. The move highlights the financial and regulatory hurdles that have forced BluSmart to rethink its business model and partner with a global giant like Uber to survive.
For Uber, the addition of BluSmart’s EV fleet strengthens its commitment to sustainable transportation and expands its green mobility footprint in key cities. For BluSmart, the transition offers a lifeline amid operational difficulties, allowing it to focus on fleet management while leveraging Uber’s platform for customer reach. As the EV ride-hailing landscape evolves, the partnership between BluSmart and Uber could set a precedent for other startups facing similar challenges, emphasizing collaboration over competition in the race toward greener urban mobility.
