BluSmart Reshapes its Future: Big Changes Ahead for Green Mobility Leader

India's electric ride-hailing firm BluSmart has notified its users that bookings on its platform for rides will be suspended temporarily. Users in Mumbai, Delhi-NCR, and Bengaluru cannot choose dates and time slots until May 7, in effect halting BluSmart's operations till then. This sudden notice comes in the wake of an SEBI inquiry into BluSmart's significant finance partner firm Gensol Engineering.

 

SEBI's investigation revealed suspected mismanagement of more than ₹200 crore, money originally meant for electric vehicle purchases. The discovery is a cause for concern regarding the sustainability of the company's operations. BluSmart is also said to be looking to change its business model, from an independent ride-hailing app to a fleet supplier for Uber. The change has already been sanctioned by BluSmart's shareholders, with an initial handover of 700–800 vehicles to Uber.

The suspension of bookings for now is a tipping point for the startup, which had positioned itself as a environmentally-friendly disruptor to the big players such as Ola and Uber.

 

The app of BluSmart continues to function, although the suspension of bookings indicates towards its continuing challenges.

 

Source: CNBC-TV18