BluSmart, India’s all-electric ride-hailing service, is navigating a period of uncertainty following recent developments involving its parent company, Gensol Engineering Ltd. The Securities and Exchange Board of India (SEBI) has barred Gensol’s founders from holding key positions due to alleged defaults on loans totaling approximately ₹9.78 billion, primarily used to purchase electric vehicles for BluSmart. These findings have raised concerns about BluSmart’s operational stability and future prospects. Reuters
In response to these challenges, BluSmart has suspended new ride bookings through its app in major cities including Delhi-NCR, Mumbai, and Bengaluru. Users attempting to book rides are unable to select time slots or dates, indicating a temporary halt in services. Despite these setbacks, BluSmart remains operational in select areas, continuing to serve its existing customer base.
Additionally, BluSmart is reportedly planning a strategic shift from its core cab business to operate as a fleet partner for rival Uber. Shareholders have approved a phased transition of its existing fleet, starting with 700-800 vehicles, although the timeline for this shift is yet to be finalized.
These developments underscore the challenges BluSmart faces as it adapts to regulatory scrutiny and market dynamics.The company’s future trajectory will depend on its ability to navigate these hurdles and redefine its role in India’s evolving electric mobility sector.
