'BluSmart continues to operate as usual:' Company says amid shutdown rumours
BluSmart's statement comes as reports suggest it plans to shut down its cab-hailing service and pivot to a fleet operator model.
EV-ride hailing platform BluSmart on Monday urged stakeholders not to draw conclusions on “unverified information” amidst a report that the company is looking to shut down its core business.
The Economic Times, in a report citing sources, said that BluSmart is transitioning to the role of a fleet operator for US-based Uber.
The report added that its shareholders have approved a transition plan, wherein BluSmart’s fleet will be onboarded onto Uber’s platform over the next few weeks, starting with 700-800 cars in phases.
However, in a statement, the Gurugram-based firm clarified, saying, “BluSmart continues to operate as usual—all our vehicles and driver partners are fully on the road, actively engaged in serving our valued customers across cities.”
The news comes weeks after BluSmart deployed 300 electric cabs on its rival Uber’s platform as part of an experiment amidst mounting trouble at the company—a plan that had been in the making for several months. This arrangement had followed a standard aggregator model, with Uber charging a commission on each ride.
According to the ET report, once the BluSmart vehicles get listed on the platform, the startup will get a portion of the fares earned by the vehicles, with Uber taking a portion of these fares as commission, similar to the structure it currently has in place for its own fleet.
Amidst an ongoing cash crunch after reportedly being unable to raise a fresh funding round and troubles brewing at Gensol Engineering—a company that was founded by BluSmart’s founders, Anmol Jaggi and Puneet Jaggi, and leased majority of BluSmart’s cabs—the firm has been weighing options, including eyeing an investment from Uber, according to the ET report.
Uber did not respond to YourStory’s request for comment.
However, BluSmart said, “As a responsible organization, we will share an official update in due course. We thank our customers, partners, and stakeholders for their continued trust and support."
Edited by Suman Singh