BluSmart drivers look to join other platforms, but struggle with costs

With high joining costs and daily rentals payable, former BluSmart drivers say they simply can't afford joining most other platforms

Investors, competitors, and buyout firms are lining up to take over the electric vehicles leased by cab-hailing company BluSmart, but it is the drivers who are still getting the short end of the stick.

 

A majority of BluSmart drivers, who were left in limbo after the electric cab-hailing company halted operations last month, are now queuing up at Evera and Everest Fleet — a major fleet partner for Uber — in hopes of finding work. However, entry barriers, such as daily rentals and security deposits, have left many of them stranded, deepening their financial distress.

 

Several drivers told Business Standard they were asked to pay security deposits ranging from Rs 5,180 to Rs 20,180, in addition to daily rentals of Rs 300 to Rs 1,050.

 

Sanjay Sagar, who joined BluSmart in 2022, said he recently enquired about job opportunities at Everest Fleet. He mentioned that for Uber Green, the electric vehicle (EV) cab service of the platform, the company asked for a security amount of Rs 3,500 and a daily rent of nearly Rs 1,450.

 

"If we assume that the company gives us work of Rs 3,000, there is still not enough left for us. We can not work for 14-16 hours a day to earn more. In addition, several rides are low-cost (maybe between Rs 100-200), you may spend 8-9 hours and earn only Rs 1,400, which you need to give to the company as rent," Sagar pointed out.

 

For Uber Black, the premium car service option from Uber, Everest Fleet currently gives a monthly payout of Rs 25,000 to the drivers, and initially charges Rs 1,000 for creating an ID and for documentation purposes, Sagar said. However, he added that the waiting time for securing these cars is up to a month as the company may be running out of stock.

 

Siddharth Ladsariya, founder and chief executive officer at Everest Fleet, agreed that BluSmart drivers have been queueing up. To address this influx, the company has come up with a new model where they are not taking any deposits but are hiring drivers on a salary basis.

 

"At Everest Fleet, drivers can choose between fixed or variable compensation models. The fixed payout model offers a base salary along with incentives and accommodation, while the variable model allows drivers to retain additional earnings, which vary depending on the car model and include charging costs," he said, adding that many drivers have opted for the variable model.

 

Everest Fleet, to date, has onboarded over 350 BluSmart drivers across Delhi's National Capital Region (NCR), Mumbai, and Bengaluru. "We operate a fleet of over 20,000 cars. Delhi, Mumbai, and Bengaluru alone account for around 11,000 vehicles, giving us significant capacity to absorb more drivers," Ladsariya said.

 

Apart from Everest Fleet, EV cab-hailing firm Evera is also hiring BluSmart drivers. "We have hired about 150 drivers and may need 150-200 more. Evera is paying a fixed amount of Rs 200 per trip to the drivers," a company executive said.

 

But drivers continue to face challenges while trying to join any other platform. Echoing Sagar's thoughts, Rashmi (name changed), a woman driver, said, "The rent per day for Uber Green is around Rs 1,400. We also give a security amount. However, the amount is only refundable if we work for at least three months. What if I am unable to continuously work? The security amount will be lost."

 

Another driver, Bablu, shared that Everest Fleet has a cost structure that is unaffordable for him without upfront earnings. "I went to Everest Fleet, and they wanted Rs 10,000 as security for the car and Rs 700 per day as rental. How do we afford this?" he asked.