BluSmart users stranded as firm suspends ride-hailing operations: Report
NEW DELHI: EV ride-hailing company BluSmart is facing a significant operational shake-up, with users reporting widespread booking issues across Delhi-NCR, Bengaluru, and Mumbai.
The disruption reportedly stems from BluSmart’s decision to suspend ride-hailing services in select areas as it transitions its fleet to Uber’s platform, marking a strategic shift in its business model.
The disruption reportedly stems from BluSmart’s decision to suspend ride-hailing services in select areas as it transitions its fleet to Uber’s platform, marking a strategic shift in its business model.
Many BluSmart users have found themselves unable to book rides from key locations, including Delhi Airport and parts of Gurgaon, encountering messages like "no slots available" on the app. This has led to confusion and frustration among passengers relying on the service for airport and intercity travel.
The operational halt comes on the heels of mounting financial difficulties, including high cash burn rates and ongoing troubles linked to Gensol Engineering — a company promoted by BluSmart co-founder Anmol Singh Jaggi. These financial strains have played a key role in BluSmart’s move to exit its core ride-hailing operations.
Earlier this month, BluSmart had already scaled down its services drastically. The company, which once facilitated 25,000 to 30,000 daily rides, had cut its operations in half even before the latest suspensions took effect. The situation has only worsened with the recent regulatory action taken against Gensol Engineering.
The Securities and Exchange Board of India (Sebi) recently issued an interim order against Gensol Engineering. The order alleged that Anmol Singh Jaggi and his family diverted loans taken by Gensol Engineering to purchase electric vehicles, using the funds for unrelated purposes, including buying luxury apartments in Gurgaon.
As BluSmart navigates its pivot away from direct ride-hailing services, the integration of its EV fleet into Uber's network appears to be a survival strategy amid ongoing scrutiny and financial instability. The full extent of service disruptions may become clearer in the coming weeks as the transition unfolds.
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