Game Over For BluSmart: Electric Cabs Now Being Rebranded As Uber Green
The news about the uncertainty surrounding the electric cab provider BluSmart has been circulating online for the past couple of days. The mismanagement of funds and other issues have put BluSmart in a very tight spot. Amid the ongoing issues, it looks like BluSmart Mobility has started rebranding its cabs. Recently, images of BluSmart cabs being rebranded as Uber Green have surfaced from Bengaluru.
BluSmart, which is owned by Gensol Engineering, is currently in talks with Uber’s Indian arm to lease out around 800 to 1,000 of its EVs as Uber Green cabs. As per a report by NDTV Profit, the process is already underway, and the livery on many BluSmart cabs has already been changed to Uber Green.
The image that is circulating online is actually from Bengaluru airport. The report mentions that the drivers of BluSmart have been asked to stop accepting bookings for the next three to four days due to an audit.
We assume that when the drivers resume their duties after the so-called audit, they will be asked to operate under Uber Green instead of BluSmart. Whatever the reason may be, things are not looking great for BluSmart.
What Happened?
The Jaggi brothers founded Gensol Engineering as an engineering, procurement, and construction company. In 2018, Jaggi teamed up with Punit Goyal and started BluSmart. As part of their expansion plans, Gensol secured loans worth nearly ₹978 crore from government-backed lenders IREDA and Power Finance Corporation between 2021 and 2024.
The aim was to buy 6,400 electric vehicles for leasing to BluSmart. However, when SEBI investigated, it was found that the funds earmarked for EV purchases were misused. Only 4,704 vehicles were actually bought, at a cost of ₹568 crore.
SEBI found that the remaining ₹262 crore was unaccounted for. Instead of being used for EV procurement, large portions of these funds were routed through a web of related entities and ultimately spent on personal luxuries, including a high-end apartment in Gurgaon’s DLF Camellias project.
The Securities and Exchange Board of India (SEBI) has debarred BluSmart’s founders, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the capital markets and holding directorial posts, following revelations of large-scale fund diversion.
After the news broke, Gensol’s stock price plummeted, wiping out investor wealth and triggering a forensic audit of the company’s accounts. For BluSmart, the crisis has sparked an exodus of top executives, including the CEO, CTO, and Chief Business Officer, all of whom resigned in late March.
BluSmart was definitely a great option for Indian commuters. It was different from Uber and Ola, as it did not rely on driver-owned cars. BluSmart owned and operated its entire fleet. This helped them manage the system, including charging and maintenance.
However, the major drawback of this system was that the company had to spend a lot on assets (cars). With all these issues in play, the company is now preparing to wind down its own app-based ride-hailing service and transition to operating as a fleet partner for Uber.