Electric ride-hailing start-up BluSmart plans to cease its core business and begin operating as a fleet partner for rival Uber.
The shareholders of BluSmart have also sanctioned a proposal to transfer its fleet from its platform to Uber in the coming few weeks, “starting with 700-800 cars in phases,” the report states. “Once the transition is complete, BluSmart will wind down its own ride-hailing business.” The timing of the process is still under consideration.
BluSmart Mobility has experienced a number of top-level exits and is now restructuring its business to optimize its finances. Sources indicate that Vice President of Experience Priya Chakravarthy, CFO Tushar Garg, CTO Rishabh Sood, and CEO Anirudh Arun have all exited the company.
One of them stated that Nandan Sharma, the former vice president of operations and business, will take the position of CEO and that additional exits could happen in the days to come.
As BluSmart’s parent company, Gensol Engineering, winds up its existing lease arrangements, the shift happens at the same period that BluSmart has initiated operational restructuring. Through this deal, Gensol will sell 2,997 EVs to Refex Green Mobility, a Chennai-based company, which will then lease them back to BluSmart. Approximately 34% of BluSmart’s fleet of 8,700 vehicles being offered for sale in this deal, whereas Refex is assuming Gensol’s Rs 315 crore debt. The deal is awaiting the necessary regulatory approvals, however.
Uber began negotiating with BluSmart Mobility, as reported, to grow its market share in India’s electric taxi segment. The key goal of the company was to evaluate BluSmart’s assets, particularly its electric vehicle fleet. Anmol Singh Jaggi, one of BluSmart’s cofounders and CEO of solar engineering procurement and construction company Gensol Engineering, faced liquidity concerns, triggering the acquisition talks.
Jaggi has explained that BluSmart is still committed to expanding and developing sustainable mobility and refuted the buyout rumors as “purely speculative and unfounded.”