2 weeks Ago
BluSmart is planning to exit its core business and pivot to operating as a fleet partner of rival Uber. According to a report by Economic Times, the cash strapped electric vehicle (EV)-driven ride hailing service has planned this move nearly six years after it first entered the mobility space in a similar capacity. Sources told Economic Times that BluSmart’s shareholders have approved a plan as per which it will begin a transition of the fleet from its platform to Uber over the next few weeks.
This will be facilitated in phases starting with 700-800 cars to begin with. According to the report, once the transition is complete, BluSmart will wind up its own ride-hailing business. The timeline for this process is still being finalised.
This comes as the EV cab hailing service faces high cash burn — in excess of ₹ 20 crore every month. It was reported earlier that the US-origin ride-hailing giant Uber Technologies may be in early stages of discussion to acquire the Gurugram-based electric cab service operator BluSmart Mobility. The announcement came at a time when when Gensol Engineering , a solar engineering procurement and construction company which is promoted by BluSmart's cofounder Anmol Singh Jaggi, was facing liquidity issues.
The EV major still faces cash burn amid rival competition and industrial trends Uber is a direct competitor, with its service called ‘Uber Green’ which the company is looking to expand. BluSmart's over 5,000 strong electric vehicle fleet in Delhi-NCR, Mumbai and Bengaluru can help Uber achieve just that..
