Electric cab-hailing startup BluSmart is making a change. Once celebrated for its all-electric, app-based cab service, the company is now pulling the plug on its core ride-hailing business. Instead, BluSmart will lease 700 to 800 electric vehicles (EVs) to Uber and operate as a fleet partner. This decision comes in response to sustained financial stress, failed fundraising efforts, and a mounting debt crisis linked to its promoter, Gensol Engineering. With losses piling up, BluSmart’s leadership has chosen to pivot and collaborate with a more established player to stay afloat.
BluSmart Fleet Partner For Uber: A Strategic Shift
View this post on Instagram
This pivot marks a significant moment for BluSmart. The company initially entered the market with the ambition to revolutionise Indian ride-hailing using only electric vehicles. However, its model encountered significant obstacles, as reported by the Economic Times. High operational costs, limited capital flow, and fierce competition meant that profitability was always out of reach.
Also Read: “Uber Cab Costs Rs: 100, Uber Pets Costs Rs: 530 For 2kms,” Claims Gurugram Woman; Netizens Divided
The situation worsened when Gensol Engineering, which backs BluSmart, experienced a serious debt crisis. This added further pressure on BluSmart to find an urgent solution. By becoming a BluSmart fleet partner for Uber, the company aims to reduce its operational burden and generate steady income by leasing its EVs.
A New Path For India’s EV Mobility Startups
View this post on Instagram
BluSmart’s decision mirrors a broader shift in India’s startup ecosystem. More companies are stepping away from customer-facing roles and choosing to support large-scale platforms. Instead of competing, they are collaborating.
Also Read: Uber Launches Uber For Teens In India Offering Supervised Rides For Ages 13-17
Uber benefits from this, too. With BluSmart on board, Uber can grow its electric fleet without direct investment in vehicles. This partnership also helps Uber advance its global sustainability goals in the Indian market.
What’s Next For BluSmart?
View this post on Instagram
BluSmart’s app may soon shut down completely. However, its electric cars will still be on the roads, now serving riders through Uber’s platform. The company will refocus on fleet operations, maintenance, and managing its EV charging infrastructure.
Becoming the BluSmart fleet partner for Uber may not have been the startup’s original plan. But it offers a chance for survival—and perhaps a second shot at success in the evolving EV landscape.
Cover Image Courtesy: BluSmart / Website