BluSmart to exit cab-hailing service, pivot to rival Uber's fleet partner: Report

BluSmart is planning to exit its core business and pivot to operating as a fleet partner of rival Uber. According to a report by Economic Times, the cash- strapped electric vehicle (EV)-driven ride-hailing service has planned the move nearly six years after it first entered the mobility space in a similar capacity.

Sources told the Economic Times that BluSmart’s shareholders approved a plan to begin the transit phase of its fleet from its platform to Uber over the next few weeks. This will be facilitated in phases, starting with 700-800 cars.

Why is BluSmart planning to exit ride-hailing service?

According to the report, BluSmart will wind up its ride-hailing business once the transition is complete. The timeline for the process is being finalised. Sources told the business news daily that this comes as the EV cab-hailing service faces a high cash burn—in excess of ₹20 crore every month.

BluSmart’s services have been affected. The number of daily rides has dropped to less than half of the 25,000-30,000 rides it was offering at its peak in 2023. Several top executives have also left the company. These include Anirudh Arun, who was the CEO of BluSmart Fleet; Rishabh Sood, who was the Chief Technology Officer (CTO); and Tushar Garg, a former Uber India executive who was working as BluSmart’s Chief Business Officer.

BluSmart-Uber deal

It was reported earlier that Uber Technologies, the US-origin ride-hailing giant, is in the early stages of discussions to acquire the Gurugram-based electric cab service operator. The announcement came when Gensol Engineering, a solar engineering procurement and construction company promoted by BluSmart's cofounder Anmol Singh Jaggi, faced liquidity issues.

Uber Technologies is a direct competitor, with its service called ‘Uber Green’, which the company wants to expand. BluSmart's over 5,000-strong EV fleet in Delhi-NCR, Mumbai, and Bengaluru can help Uber achieve just that.

BluSmart was founded in 2019 and is backed by BP Ventures. According to Tracxn, it has raised over $150 million through a mix of equity and debt since its launch. Uber remains the largest player with a 50 per cent share, while Ola, once the dominant name in the sector, has dropped to 30 per cent.

In March, reports said Uber and BluSmart were in early talks for a possible acquisition. In addition to the vehicles, BluSmart also has a network of EV charging infrastructure in NCR and Bengaluru. Jaggi and cofounder Punit Goyal together own a 24 per cent stake in BluSmart, with Jaggi’s brother, Puneet Singh Jaggi, holding 5.7 per cent, according to Tracxn data.