Electric ride-hailing startup BluSmart may opt for hybrid model of ops

Services likely to be offered on Uber as well

BluSmart, the all-electric ride-hailing startup, is looking to go for a hybrid model of operations wherein its services would be available on its own app as well as Uber’s platform, the largest player in the ride-hailing arena. According to sources, BluSmart electric vehicle (EV) cabs would run on the Uber platform under the Uber Green category, which offers electric options. 

Uber Green is live in four cities, and its green services have been launched in partnership with fleet partners — Lithium Urban Technologies, Everest Fleet, Moove, and Refex Green Mobility. This is part of Uber’s global initiative to become a zero-emissions mobility platform by 2040. Sources indicated that the model is being adopted to offer BluSmart a wider range and also improve the running of their vehicles.

  An email sent to Uber did not elicit any response.

  BluSmart currently has a fleet of 8,500 cars across India, with the largest being in Delhi/NCR. “BluSmart cabs currently have an average of six-seven trips a day. When available on the Uber platform, it is expected that trip average would increase to nine-ten a day. This would bolster the company’s efforts to break-even on the costs of their vehicles,” said a source with knowledge of the ongoing discussion.

  According to a Reuters report in 2023, Uber had plans to have 1 million EVs in India and South Asia. 

It is learnt that BluSmart would not cease its offering under its own app of same name. A source said, “Only a portion of BluSmart’s fleet would operate via Uber.” The deliberations with Uber are ongoing and the sole focus is to improve the unit economics of BluSmart’s cabs, the source added.

  Unlike other ride-hailing apps, including Uber, BluSmart owns the cabs that it runs and has drivers on contract with a fixed income and variable performance bonus. “This is a fixed cost for the company and the assets need to be burnt more to generate more revenue for the company,” said another source familiar with the deliberations. A spokesperson for BluSmart, in a written statement, said BluSmart continues to operate as usual. “All our vehicles and driver partners are fully on the road, actively engaged in serving our valued customers across cities. As a responsible organisation, we will share an official update in due course. We thank our customers, partners, and stakeholders for their continued trust and support,” the statement said. 

In an interview with this paper last month, Anmol Jaggi, cofounder of BluSmart, had dispelled any rumour of sale of the company to any rival entity. “It is a strong and complete denial. In all previous rounds and the current round, the family has put in significant money. We are committed to running the business; we are substantial owners. Why would we want such a beautiful business that we have built to be given to somebody else?,” Jaggi had said.   

CHARGING AHEAD

  - BluSmart cabs to feature under Uber Green, which provides electric mobility options

  - Firm looks to boost trip volumes from 6–7 to 9–10 per day per car

  - Only a portion of BluSmart’s fleet (currently 8,500 cabs) would operate on Uber

  - Discussions with Uber ongoing; no formal agreement announced yet