Cash-strapped startup BluSmart is planning to exit is core cab business and shift to operating as a fleet partner of rival Uber, The Economic Times has reported. This comes nearly six years after the EV-ride hailing startup entered the space in 2019.
BluSmart's shareholders have approved a plan to begin the transition of its existing fleet to Uber over the next few weeks. The shift will be done in phases, starting with 700-800 cars, the report cited a source as saying. The timeline for this transition is still being finalised.
Moneycontrol couldn't independently verify the report.
The cab startup reportedly has a high cash burn of more than Rs 20 crore a month. Founders Anmol Singh Jaggi and Puneet Singh Jaggi have been injecting large sums of funds into the company, along with external funding rounds. However, with a massive debt crisis at Gensol Engineering, also promoted by the Jaggi brothers, cash is no longer easily available to invest in the startup, the report said.
This has also led to reported delays in salary payments, as investors lose confidence to invest fresh capital into the startup, the report said.
Also read: Refex Green mobility drops EV deal with Gensol as BluSmart’s troubles deepen
BluSmart was launched in 2019 as a fleet operator, listing several electric vehicles on Uber. In the same year, it launched its ride-hailing platform. In 2022, the startup placed an order for 10,000 EVs with Tata Motors. The next year, it closed a $50 million funding round. However, as the Gensol Engineering debt crisis emerged in 2025, BluSmart began talks with Uber for a deal.
The company is now planning to go back to being a fleet operator, from where it had started, the latest report said.
As reported by Moneycontrol, Gensol Engineering has been under scrutiny due to allegations of falsified debt servicing documents and high debt levels. Gensol Engineering has denied any involvement in falsification and has initiated an internal probe into the matter.
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