NEW DELHI: Electric vehicle (EV)-only ride-hailing platform BluSmart has temporarily suspended bookings in major cities, including Delhi-NCR and Bengaluru, following financial turmoil at its key backer and fleet provider, Gensol Engineering Ltd (GEL).
While the BluSmart app remains avallable for download, users have reported that they are unable to book rides. Several customers have taken to social media to express frustration over the sudden service disruption. When contacted by The New Indian Express, BluSmart declined to comment on the suspension.
The suspension comes a day after the Securities and Exchange Board of India (SEBI) barred Gensol Engineering and its promoters - Anmol Singh Jaggi and Puneet Singh Jaggi - from the securities market over allegations of fund diversion and corporate governance lapses.
Sebi in its probe found that Gensol Engineering had availed Rs 977.75 crore in term loans from institutions like IREDA and PFC. Of this sum, Rs 663.89 crore was earmarked for purchasing 6,400 electric vehicles (EVs).
However, the company purchased only 4,704 vehicles worth Rs 567.73 crore. Sebi stated that an amount of Rs 262.13 crore remains unaccounted.
Launched in 2019, BluSmart emerged as a strong competitor to Uber and Ola in metro cities. However, financial troubles and SEBl's action against Gensol have put its ride-hailing operations at risk.
Reports suggest BluSmart is exploring a shift to becoming a fleet partner for Uber, with shareholders approving a plan to transition its existing fleet.
The move is expected to begin with 700-800 cars in the coming weeks, eventually covering its entire fleet of 8,000 EVs (over 5,000 owned by Gensol, the rest leased or owned by BluSmart).
If the transition proceeds, BluSmart may shut down its own ride-hailing app, marking the end of its direct competition with Uber and Ola.