In a bid to address its growing financial challenges as well as shore up revenues, electric ride-hailing startup BluSmart Mobility is looking to shift to a hybrid operational model by joining hands with Uber India while continuing to operate under its own brand. Sources familiar with the development said that the partnership will allow a portion of BluSmart’s fleet to fulfill demand through Uber Green, Uber’s electric vehicle (EV) vertical.
“BluSmart is evolving towards a hybrid model that combines operations via Uber while preserving its independent brand identity for sustainability-conscious users,” said a source close to the company.
The collaboration is a strategic attempt to reduce customer acquisition costs and boost fleet utilisation. BluSmart’s vehicles currently average about seven trips per day, a figure that experts say is not viable for long-term operations. With Uber’s scale and existing demand, BluSmart hopes to increase trip volumes and improve cash flow. Under the new arrangement, BluSmart will earn a share of the fare revenue generated via Uber, while Uber will retain a commission.
Uber Green currently operates more than 18,000 EVs, in collaboration with fleet partners like Everest, Lithium, and Refex. The addition of BluSmart vehicles is expected to push Uber closer to its target of 25,000 EVs on its platform.
While BluSmart has primarily functioned as a scheduled airport ride service in Delhi NCR, Bengaluru, and more recently Mumbai, it has struggled to break into the on-demand ride-hailing space. With a current fleet of approximately 8,700 EVs, it lacks the critical mass required for effective on-demand service delivery, with experts suggesting that at least 40,000 vehicles per city are needed. The Uber tie-up is expected to serve as a launchpad into the on-demand market without the need for a costly expansion of its independent infrastructure.
Despite the operational integration, BluSmart will continue with its fixed-income model for drivers, distinguishing it from Uber’s gig-based compensation model.
When contacted, a BluSmart spokesperson 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”.
The shift comes amid growing financial stress at BluSmart’s parent company, Gensol Engineering, which recently faced a downgrade to default rating by two credit agencies. In a bid to restructure its obligations, BluSmart had planned to sell 2,997 vehicles, roughly 34% of its fleet, to Refex Green Mobility, with a lease-back arrangement. The deal, which involved Refex assuming Rs 315 crore in debt from Gensol, eventually fell through due to disagreements over exclusive use on the Uber platform.
Compounding its troubles, BluSmart has seen multiple top-level exits in recent weeks, including CEO Anirudh Arun, CBO Tushar Garg, CTO Rishabh Sood, and VP of experience Priya Chakravarthy. Nandan Sharma, formerly VP of business and operations, has stepped in as the new CEO.
The company has also reportedly delayed March salaries, with co-founder Anmol Singh Jaggi assuring staff that dues will be cleared by the end of April. Financial disclosures from the company indicate a monthly revenue of Rs 70 crore (annualised to Rs 840 crore), a total debt of Rs 985 crore, and a net outstanding debt of Rs 240 crore.