BluSmart to Exit Ride-Hailing, Transition to Uber Fleet Partner Amid Cash Burn Concerns

Electric ride-hailing start-up BluSmart plans to exit its core business and transition to operating as a fleet partner of rival Uber, nearly six years after initially entering the mobility sector in a similar role, the Economic Times reported.

BluSmart’s shareholders have approved a plan to transition its fleet from its platform to Uber over the next few weeks, “starting with 700-800 cars in phases,” the report said, quoting a source. “Once the transition is complete, BluSmart will wind up its own ride-hailing business.” The timeline for this process is still being finalized, the source added.

The pivot follows BluSmart's substantial cash burn, exceeding Rs 20 crore monthly. Founders Anmol Singh Jaggi and Puneet Singh Jaggi, who hold over 25% of the company, had previously injected significant capital alongside external fundraising. BluSmart operates an all-electric fleet. Uber launched its EV service, Uber Green, in 2023, aiming to deploy 25,000 electric cars through fleet partners like Everest Fleet, Lithium Urban Technologies and Mo.

Top Executives Exit

BluSmart Mobility, which is now restructuring its operations to optimize its financials, has witnessed a number of high-level exits. According to sources, CEO Anirudh Arun, CFO Tushar Garg, CTO Rishabh Sood and Vice President of Experience Priya Chakravarthy have all resigned from their positions at the company.

Nandan Sharma, who formerly served as vice president of business and operations, will take over as CEO, according to one of the individuals, who added that further exits could occur in the coming days.

The shift coincides with BluSmart's recent announcement of operational restructuring, as its parent company, Gensol Engineering, terminates its existing lease agreements. As part of this deal, Gensol will sell 2,997 electric vehicles to Chennai-based Refex Green Mobility, which will lease them back to BluSmart. This sale accounts for approximately 34% of BluSmart's 8,700-vehicle fleet, with Refex taking over Gensol's Rs 315 crore loan. However, the transaction still awaits necessary government approvals.

Uber Eyeing BluSmart Acquisition

Uber reportedly initiated discussions with BluSmart Mobility to bolster its presence in India's electric cab sector, focusing on evaluating BluSmart's assets, particularly its electric vehicle fleet. The acquisition talks emerged as BluSmart cofounder Anmol Singh Jaggi, who also leads Gensol Engineering, a solar engineering procurement and construction company, faced liquidity challenges.

Jaggi has dismissed the takeover rumors as “purely speculative and unfounded,” emphasizing that BluSmart remains committed to expanding and advancing sustainable mobility.