BluSmart, the electric ride-hailing startup, is reportedly planning to exit its core business and become a fleet partner for Uber. This transition, approved by shareholders, will involve moving its fleet to Uber in phases, starting with 700-800 cars. The pivot comes amid the company’s high cash burn—over ₹20 crore every month. Founders Anmol Singh Jaggi and Puneet Singh Jaggi, who own over 25% of the company, had been injecting large amounts of capital alongside the company’s external funding rounds earlier. BluSmart has an all-electric fleet.
The company has faced significant financial challenges, including a failed $50 million fundraising effort and delayed salary payments. Additionally, BluSmart’s parent company, Gensol Engineering, is dealing with a debt crisis, further impacting BluSmart’s operations. As part of the restructuring, Gensol plans to sell approximately 3,000 electric vehicles to Chennai-based Refex Industries, which will lease them back to BluSmart. This deal is subject to regulatory approval.
Leadership changes have also occurred, with several top executives, including the CEO, stepping down. Nandan Sharma, the former Vice-President of Business and Operations, has been appointed as the new CEO.
Once the transition to Uber is complete, BluSmart will wind up its own ride-hailing business. The timeline for this process is still being finalized
