Blusmart Plans To Exit Cab Services, Shifts Focus To Becoming Uber’s Fleet Partner
BluSmart, an electric vehicle (EV) ride-hailing startup, is reportedly planning to exit its core cab business and transition to serving as a fleet partner for Uber, according to The Economic Times. This shift comes nearly six years after BluSmart entered the ride-hailing industry in 2019.
BluSmart’s shareholders have reportedly approved a plan to gradually transition its fleet to Uber over the next few weeks. The process is set to begin with 700-800 cars and will unfold in phases. The exact timeline for the transition is still being finalized, the report notes.
The startup is facing significant financial pressure, with a reported cash burn of more than Rs 20 crore per month. The Jaggi brothers, Anmol Singh Jaggi and Puneet Singh Jaggi, who founded the company, have been injecting large amounts of personal funds into BluSmart, along with securing external funding rounds. However, following a major debt crisis at Gensol Engineering, another company owned by the Jaggi brothers, they are no longer able to sustain the cash flow needed to support BluSmart’s operations. This has led to delays in salary payments and a decline in investor confidence, with fewer willing to inject fresh capital into the company.
BluSmart, which initially began as a fleet operator for Uber in 2019, later expanded by launching its own ride-hailing platform in the same year. In 2022, it placed an order for 10,000 EVs from Tata Motors, and in 2023, it raised $50 million in funding. However, as the Gensol Engineering debt crisis unfolded in 2025, BluSmart began talks with Uber, ultimately deciding to return to its original role as a fleet operator.
