BluSmart plans to end cab services, may become Uber's fleet partner

Blusmart plans to end Cab Services, Transition to Uber Fleet Partner Amid Financial Strain.

Expert Analysis :

• Business Pivot: BluSmart to exit core cab business and transition to operating as Uber's fleet partner after six years in the industry .

• Phased Transition: The transition is expected to begin with 700-800 cars, phased over the coming weeks.

• Financial Strain: BluSmart reportedly faces a high cash burn of Rs 20 crore/month, with funding limited due to a debt crisis at Gensol Engineering, also promoted by the Jaggi brothers. This has also led to reported delays in salary payments, as investors lose confidence to invest fresh capital into the startup.

• Company History: BluSmart launched in 2019 as a fleet operator, ordered 10,000 EVs in 2022, and raised $50 million in 2023.

• Strategic Shift: BluSmart plans to return to being a fleet operator amid Gensol Engineering’s debt scrutiny and internal probe.