BluSmart was dealt another blow after Uber ended talks for a deal to absorb Gensol Engineering-owned company’s 5,000 electric cars into its platform over high valuation and regulatory concerns, a report by Mint said on May 5.
The talks were part of BluSmart’s plan for revival under which it was supposed to act as a fleet partner, the report said.
The newspaper, citing sources, said Uber has “withdrawn its interest” after the price being asked was not matching its valuation. The report said depreciation among EVs is very high and this was not being considered by BluSmart.
This was the second setback for the EV ride hailing firm in recent weeks after Anmol Jaggi-founded firm failed to seal a Rs 315-crore deal with Chennai-based Refex Group for its 2,997 cars, Mint said.
Moreover, there were concerns if the cars can be sub-leased to Uber. Gensol had taken a loan of Rs 663 crore from Power Finance Corporation and Indian Renewable Energy Development Agency to acquire the cars, which were leased to BluSmart. Mint said the company was advised to not take any ‘risks’.
Moneycontrol could not independently verify the report.
The ride-hailing startup was forced to halt new ride bookings through its app in most parts of major cities such as Delhi-NCR, Mumbai and Bengaluru after reports said promoters diverted funds meant for the company.
Market regulator SEBI, in an interim order, alleged that Gensol Engineering promoters Anmol and Puneet Singh Jaggi diverted loans meant for funding BluSmart's electric vehicle purchases to buy a luxury apartment in DLF's The Camellias, Gurugram, and high-end golf equipment worth Rs 26 lakh.
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