Uber BluSmart Deal
BlueSmart’s parent company Gensol Engineering has been facing financial problems for some time. However, BlueSmart has clearly denied any talks with Uber. BluSmart clearly denies any talks about being bought by Uber. They said the report is false and just a rumor with no truth. BluSmart, India’s top EV ride-hailing and charging platform, is main motive is to focused on growing its business, expanding to new different different areas, and promoting eco-friendly transport.
Gensol, mainly known for its solar engineering and construction work, entered the electric vehicle market through BluSmart. When BluSmart started in 2019, it was seen as India’s eco-friendly alternative to Uber and Ola, offering fully electric cabs for city travel.
Over the years, BluSmart has faced many challenges . The high costs of buying cars, building charging stations, and giving incentives to drivers have put pressure on its financial conditions. Even though it has raised a lot of money from investors like bp Ventures and others, it still hasn’t made a profit.
BluSmart became popular by offering premium, eco-friendly rides with no surge pricing. It focused on cities like Delhi-NCR and Bengaluru, targeting corporate customers and airport trips to keep demand steady.
BluSmart faces tough competition from big rivals like Uber and Ola, which have also added more electric cars. Unlike them, BluSmart owns and manages its cars instead of using driver-owned vehicles, which has made its costs much higher.
BluSmart has heavily depended on government subsidies and incentives to support its electric vehicle business. While these incentives have helped the company grow, they have also created challenges. Delays in receiving subsidies have made it harder for the company to manage its expenses. On top of that, the increasing costs of financing electric vehicle purchases have added more pressure on its operations.
Recently, there have been reports that BluSmart is finding it difficult to raise new funds from investors. This financial strain might be one of the main reasons why Gensol, BluSmart’s parent company, is now rethinking its involvement in the business.
In 2024, BluSmart raised about $24 million from its current investors, including BP Ventures, and also from its founders and leadership team.
BluSmart was started in December 2019 by Anmol Jaggi, Punit K Goyal, and Puneet Singh Jaggi to offer a greener ride-hailing option in the large Indian market. So far, the company has raised $109 million through its seed and Series A funding rounds.
BluSmart says it has reached an annual revenue run rate of over approx $50 million and is growing at more than 100% every year. This means the company’s earnings are increasing day by day quickly. BluSmart has built a strong electric vehicle (EV) network with over 4,000 EV chargers spread across 35 charging stations in Delhi-NCR and Bangalore. This makes it easier for its drivers to charge their cars and keep them running without delays.
In addition to its charging network, BluSmart operates a fleet of around 6,000 electric cars as part of its ride-hailing service. This allows the company to provide eco-friendly rides to customers while maintaining better control over its operations.
