Based in Gurugram, BluSmart is hailed as one of the main competitors of Uber in India. It is also a ride-hailing platform with mobility services, but making use of electric vehicles. Thus, they ensure to provide passengers with clean and sustainable transportation.
With its fleet of cars, including the Mahindra e-Verito, Tata e-Tigor, Tata Xpres-T EV, Hyundai Kona Electric, MG ZS Electric, and Citroen e-C3, India’s first all-electric shared smart mobility platform offers a wide range of services, encompassing on-demand rides, multi-stop trips, and airport transport.
What a sad time for BluSmart because this emerging rival and competitor to Uber is reportedly suspending its services in some cities as the company has recently been in hot water when India’s market regulator conducted a probe over electric vehicle loans.
BluSmart previously operated in Delhi-NCR, Bengaluru, and Mumbai, but now there are no more rides available in those cities.
Furthermore, Delhi Airport also issued an advisory disallowing any BluSmart vehicle from lounging around the airport grounds and picking up passengers.
What’s worse, because users were caught off-guard, they still have money left in the BluSmart wallets, and now, they are unsure how to claim or use them.
This planned suspension following the sudden unavailability of the rides came a day after the Securities and Exchange Board of India launched an investigation into Gensol Engineering, the sister company of BluSmart founded by the latter’s top brass, too, Anmol Singh Jaggi and Puneet Singh Jaggi. Thus, they were also unable to book rides.
In the investigation, the co-founders were accused of redirecting substantial loan amounts for personal use, including buying luxury real estate on the outskirts of India’s capital.
EV loans, or EV financing, are usually provided by banks. They are a helpful and sustainable financing solution designed to help individuals or companies acquire electric vehicles. In other words, the co-founders of BluSmart disguised their personal motives as loans.
The Jaggi brothers have already resigned from their positions. It has been reported that they are no longer participating in and working in BluSmart’s management.
It took some time before BluSmart issued a statement, but an investor in the company was the one who spoke, saying, “It is really surprising to us that the service is unavailable. It seems to be a rub-off effect of what has happened with Gensol.”
Furthermore, according to an Indian news publication, the main reason for the suspension, aside from the legal battle, was financial difficulties, particularly high cash burn rates and ongoing battles.
BluSmart is seen as a great alternative in India for passengers, but now that they are starting to suspend its services, the ridesharing landscape in the country will change.