Gensol crisis: BluSmart suspends cab bookings via app in parts of NCR, Mumbai and Bengaluru

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BluSmart, the ride-hailing startup connected to Gensol and once seen as an emerging rival to Ola and Uber, has abruptly halted new ride bookings through its app in most parts of major cities such as Delhi-NCR, Mumbai  and Bengaluru.

Although the app remains available on the Play Store, users are unable to select a time slot or even a date, indicating a suspension of services.

The development comes just a day after SEBI’s recent findings in the Gensol Engineering probe that have cast serious doubts over the future of BluSmart.

Gensol, which leased electric vehicles to BluSmart and held close financial ties, is alleged to have diverted over Rs 200 crore meant for EV purchases, the finding revealed.

On April 14, reports suggested that BluSmart is planning to exit is core cab business and shift to operating as a fleet partner of rival Uber.

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.