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Uber, the global ride-hailing behemoth, is said to be in preliminary talks of acquiring BluSmart, India’s top electric vehicle-based taxi service, as BluSmart’s parent entity, Gensol Engineering, is struggling financially. Sources say that Gensol, having entered the EV segment initially through BluSmart, wishes to de-merge the money-guzzling business.
BluSmart Denies Acquisition Talks
Much to the contrary of reports of acquisition talks, BluSmart denied any acquisition negotiations.
“BluSmart absolutely denies any talks or negotiations for an Uber acquisition. The report of such a development is purely speculative and baseless. As India’s top EV ride-hailing and charging infrastructure platform, BluSmart is committed to scaling its business, increasing its footprint, and pushing sustainable mobility forward,” a company spokesperson replied to Moneycontrol queries.
Uber has also refused to comment on the issue.
Founded in 2019 by Anmol Singh Jaggi, Punit K Goyal, and Puneet Singh Jaggi, BluSmart set out to revolutionize urban mobility in India by offering a fully electric fleet as a green alternative to traditional ride-hailing services like Uber and Ola. The company initially gained traction due to its premium service, no-surge pricing, and sustainability-focused approach. It strategically targeted high-demand sectors, including corporate rides and airport transfers, to ensure consistent bookings.
Nonetheless, with its promising growth, BluSmart has not been able to turn a profit. Its high expenses of procuring electric vehicles, establishing charging infrastructure, and providing incentives to drivers have taken a toll on its financial health. Funded by investors such as BP Ventures and Zurich-based ResponsAbility, the company has raised more than ₹1,000 crore ($120 million) in equity and debt but still faces issues of capital scarcity.
BluSmart currently has a fleet of around 8,500 EVs in Delhi-NCR, Mumbai, and Bengaluru, and over 5,800 charging stations across 50 hubs. It expanded to Dubai very recently as well. The firm says that it has achieved more than a $50 million annual revenue run rate with over 100% year-on-year growth.
Why Uber Might Be Interested
Uber, which has been growing its own electric vehicle service, Uber Green, views the BluSmart acquisition as a strategic play to deepen its footprint in India’s fast-expanding EV ride-hailing business. BluSmart’s large fleet, built-up charging network, and customer base might provide Uber with a substantial boost in the electric mobility space.
Also, BluSmart’s model of owning and operating its own fleet instead of depending on driver-owned cars could supplement Uber’s growth strategy. This model has been one of the main causes of BluSmart’s capital-intensive operations, though.
Though BluSmart has been sticking to its denial of acquisition discussions, reports indicate Uber is seriously reviewing BluSmart’s assets as well as synergies. If the deal happens, it will represent a major change in India’s ride-hailing space, with Uber cementing its leadership in the EV space.
BluSmart’s money woes are also a top priority. Earlier this year, there were reports that the company failed to pay ₹30 crore ($3.6 million) of bond obligations in February, although BluSmart later explained that it had paid all due amounts. The firm has also been trying to raise $50 million in a Series B funding round at a valuation of $335 million.
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