BluSmart Intends to Discontinue its Taxi Services

According to a media outlet, cash-strapped company BluSmart intends to leave its primary taxi business and become a fleet partner of rival Uber. Nearly six years have passed since the EV ride-hailing firm first joined the market in 2019. A plan to start moving BluSmart's current fleet to Uber in the coming weeks has been authorised by the company's owners. According to reports, the change would be implemented gradually, beginning with 700–800 vehicles. The transition's timeframe is still being decided.

High Rate of Cash Burn-Out

According to reports, the taxi startup spends more over INR 20 crore every month. In addition to outside fundraising rounds, the company has been receiving significant financial infusions from its founders, Anmol Singh Jaggi and Puneet Singh Jaggi. Cash is no longer readily available to invest in the business, according to the reports, because to Gensol Engineering's severe debt crisis, which was also sponsored by the Jaggi brothers. According to the most recent report, the corporation now intends to return to its original role as a fleet operator.  Due to claims of fabricated debt servicing documents and excessive debt levels, Gensol Engineering has come under investigation. Gensol Engineering has started an internal investigation and denies any role in the falsification.

Delays in Salaries, Deals Cancelled Adding More Pain to the Agony

According to various reports, BluSmart Mobility, an electric taxi-hailing firm that is currently experiencing financial difficulties, has postponed its March salary payments. Cofounder Anmol Singh Jaggi promised in an email to the staff that all outstanding debts will be paid by the end of April. Jaggi stated in an email that there will be a little delay in processing salaries because of present cash flow issues. The firm would like to reassure its employees, nonetheless, that all outstanding payments will be paid by the end of April. He said that the company will be releasing pay cheques in stages, beginning with the lowest pay grades and working up, to guarantee equity and consideration for those who might be more affected. BluSmart was established in 2019 by Jaggi and Punit K. Goyal and provides EV ride-hailing services as well as charging stations in Bengaluru and Delhi NCR. In January of this year, it extended its services to Mumbai and maintained a presence in Dubai.

Refex Industries cancelled its agreement with Gensol Engineering to purchase 2,997 electric vehicles a few weeks ago. Gensol EV Lease Pvt Ltd, Gensol's EV financing division, agreed in January to sell 2,997 EV vehicles—originally leased to BluSmart—to Refex Green Mobility Limited (RGML), a subsidiary of Refex. Before that, rumours circulated that Uber was in preliminary discussions to buy BluSmart, a claim the latter once more refuted. Additionally, it was stated that the startup's activities in Dubai were shut down in mid-March, and its intentions to expand its services in Saudi Arabia were shelved.