Uber in talks to acquire EV ride-hailing firm BluSmart: Report
The talks emerge as Gensol Engineering faces liquidity challenges. However, BluSmart has denied engaging in any discussions with Uber regarding a potential acquisition. Uber also declined to comment on the matter.
Uber, the global ride-hailing giant, is reportedly in early-stage discussions to acquire BluSmart, an electric vehicle-based cab service, as its parent company, Gensol Engineering, considers exiting the capital-intensive business.
The talks emerge as Gensol Engineering faces liquidity challenges. However, BluSmart has reportedly denied engaging in any discussions with Uber regarding a potential acquisition.
The Economic Times was the first to report the development. Uber also declined to comment on the matter.
BluSmart initially gained traction by positioning itself as a premium, no-surge pricing ride-hailing service focused on sustainable transportation. The company strategically expanded in cities like Delhi-NCR and Bengaluru, targeting corporate customers and airport transfers to ensure steady demand. However, competition has intensified, with well-funded rivals like Uber and Ola expanding their electric vehicle fleets.
Unlike its competitors, BluSmart directly owns and operates its fleet rather than relying on driver-owned vehicles—a model that has significantly increased its capital expenditure. Additionally, the company’s dependence on government subsidies and incentives for EV adoption has presented challenges. Delays in subsidy disbursement, coupled with rising financing costs for EV procurement, have added pressure to its operations. Reports suggest that BluSmart has struggled to secure fresh funding, which may have prompted Gensol to reevaluate its role in the business.
In 2024, BluSmart secured approximately $24 million in funding from existing investors, including BP Ventures, alongside contributions from its founders and leadership team. Since its inception in December 2019 by Anmol Jaggi, Punit K Goyal, and Puneet Singh Jaggi, the company has raised $109 million across its seed and Series A rounds.
BluSmart claims to have surpassed a $50 million annual revenue run rate, with a year-on-year growth rate exceeding 100%. The company has established an extensive ecosystem with more than 4,000 EV chargers across 35 charging locations in Delhi-NCR and Bengaluru. Additionally, it operates a fleet of approximately 6,000 EVs as part of its ride-hailing business.
Gensol Engineering, primarily known for its solar engineering, procurement, and construction business, ventured into the electric mobility sector through BluSmart.
Edited by Kanishk Singh