BluSmart’s Ride Comes Full Circle: From EV Disruptor to Uber Fleet Partner?

In 2019, BluSmart rolled into India’s bustling ride-hailing scene like a breath of fresh air—or should we say, a breeze of clean, electric wind. Promising an eco-friendly alternative to traditional cabs, the startup made headlines as the country’s first all-electric cab aggregator. It was a daring move, challenging giants like Ola and Uber in a space that was still figuring out electric mobility.

But fast forward to 2025, and the startup is reportedly preparing for a major pivot—one that could mark the end of its ride-hailing dreams as we know them. Wondering what's going on at BluSmart? Let's decode with TICE.

From Trailblazer to Team Player?

BluSmart is now planning to pull the brakes on its core cab business, according to media reports. Instead, the company is likely to shift gears and operate as a fleet partner for none other than Uber, the global ride-hailing heavyweight it once aimed to compete with.

As per reports, shareholders have already given the green light to begin the transition. The plan? Slowly move BluSmart’s existing EV fleet into Uber’s ecosystem. The phased rollout may begin with 700 to 800 cars, and while the full timeline is still being worked out, the direction seems clear—the company is preparing to step back from the frontlines of consumer ride-hailing.

TICE could not independently verify this development at the time of writing.

Behind the Scenes: The Financial Crunch

So, what’s pushing BluSmart into the passenger seat?

It all comes down to one thing: cash. Or the lack of it.

According to the report, BluSmart has been burning through more than ₹20 crore every month—a steep cost for any startup, especially one in the capital-intensive EV space. While the founders, Anmol Singh Jaggi and Puneet Singh Jaggi, had been generously backing the company with their own funds alongside external investments, the well seems to be drying up.

And much of that has to do with the growing debt crisis at Gensol Engineering, another company promoted by the Jaggi brothers. Gensol, which has recently come under the radar for alleged irregularities in its debt servicing, is facing serious scrutiny. Though the company has denied wrongdoing and initiated an internal probe, the damage seems to have spilled over to BluSmart’s financial confidence.

Ripple Effect: Investor Woes and Salary Delays

The fallout? Investors are reportedly hesitant to pump more money into BluSmart, and there are even murmurs of salary delays at the startup. In a high-burn, low-margin business like ride-hailing, investor confidence can make or break momentum—and in BluSmart’s case, the brakes may have already been hit.

A Journey That Started with Uber

Ironically, BluSmart’s startup journey began in partnership with Uber. In its early days, BluSmart functioned as a fleet operator, listing several EVs on Uber’s platform. That was before the startup chose to build its own consumer-facing app and ride-hailing service later in 2019.

From there, it scaled with speed and ambition. In 2022, BluSmart made headlines again when it placed a massive order for 10,000 EVs with Tata Motors—a move that showcased its bullish vision for the future. The following year, in 2023, it secured $50 million in funding, underlining investor optimism.

But the year 2025 has brought an entirely different kind of spotlight. With the crisis at Gensol and the challenges of sustaining a high-burn business, BluSmart is now looking to return to where it began—as a fleet operator, this time working more closely with Uber instead of challenging it head-on.

Full Circle or Forced Retreat?

Some may see BluSmart’s decision as a strategic recalibration—after all, many startups have pivoted successfully when faced with tough realities. But for an enterprise that once symbolized India’s electric future, it’s hard not to view this shift as a bittersweet turn.

With Uber reportedly stepping in to absorb BluSmart’s fleet, the move could also signal a growing openness in the ride-hailing space toward sustainable, EV-based fleet partnerships. If executed well, BluSmart could still play a meaningful role in India’s transition to cleaner urban mobility—even if it’s behind the scenes.

But for now, it seems BluSmart’s grand ride-hailing adventure is slowly coasting to a stop.