As BluSmart's sudden failure sends ripples through several big cities where many daily commuters had become accustomed to or dependent on the EV ride-hailing service, a large number of regular commuters are now left worried by the unspent balance in their wallets.
With a fleet of over 8,500 electric vehicles and more than 5,800 charging stations, BluSmart established itself as a significant player in the urban commute sector across Delhi-NCR, Mumbai, and Bengaluru in a very short time, supported by a network of 10,000 active drivers. The electric vehicle ride-hailing service seemed to have gone offline now, leaving many regular users in a lurch and its vehicles largely off the streets, ToI reported on April 17.
The service disruption came in the wake of an interim order from Sebi on Tuesday, which alleged that Anmol and Puneet Singh Jaggi, the promoters, had redirected funds obtained through loans intended for purchasing electric vehicles for BluSmart, using a portion of the money to buy a luxury apartment in Gurugram.
The order also highlighted other governance issues, such as transactions with related entities and the misuse of corporate funds. Consequently, both promoters were barred from accessing the securities market and from holding director or key managerial positions at Gensol until further notice. Additionally, Gensol was instructed to suspend its proposed stock split.
As Gensol faces increasing scrutiny, concerns are mounting regarding BluSmart's financial viability and operational stability. Although the EV platform is legally a separate entity, its close ties to its promoters have sparked speculation about its future, particularly following reports of potential partnerships with Uber to become a fleet supplier—an option that analysts now suggest may be challenging in light of Sebi's recent actions.
The growth of BluSmart since its inception in 2019 has been remarkable. The platform found its footing in a market previously dominated by established services like Ola and Uber, providing an eco-friendly alternative with fixed pricing, dependable rides, and environmentally friendly vehicles. For numerous passengers, BluSmart became an essential part of their daily commute.
The abrupt halt in services followed a decision by market regulator Sebi, which prohibited the promoters of Gensol Engineering—the parent company of BluSmart—from participating in the securities market due to accusations of fund misallocation and governance issues.
Users' tales
Users across major cities including Delhi, Gurugram, Noida, Bengaluru, and Mumbai began reporting difficulties with the BluSmart app on Wednesday, stating that they were unable to make bookings. In many instances, neither the date nor time slots would load, preventing any bookings from being completed.
Some drivers shared with TOI that they managed to fulfill only pre-scheduled rides, while others received notifications from the company advising them not to come to work on Thursday. By late evening, there was still no official communication from BluSmart, and when approached, a company representative refrained from commenting.
The unexpected disruption caused significant inconvenience for many users. "I couldn't secure a ride at 9 am because the app wouldn't load any slots. I later found out my colleagues were experiencing the same problem," remarked Priyanshi Saha, a professional from Cyber Hub living in Sector 56, Gurugram. "This was the only service I relied on that had fixed fares and an eco-friendly approach."
Another user, Jagriti Kumar, who works in Udyog Vihar, expressed her discontent, stating that BluSmart was her sole dependable option for commuting. "It was consistent, never cancelled unexpectedly, and charged between Rs 400-450 every time. Now, I'll have to deal with fluctuating prices and unpredictable drivers on other services."
Wallet worries for commuters: What to do to get your balance back
Several loyal users voiced their concerns about the funds stuck in their BluSmart app wallets. "I have Rs 1,700 in my wallet, and there's been no word regarding refunds," mentioned Abhijeet Ghosh, a resident of central Delhi. Others like Kanika Tomar (with unspent wallet balance at Rs 2,500), and Ashish Malik (Rs 760), shared similar worries.
"The lack of communication from the company is quite unsettling," Kanika added.**
Consumer lawyer Aditya Parolia has advised users to document their wallet balances with screenshots and to promptly reach out to the company for refunds. "This documentation will assist them in establishing claims if a third-party administrator takes over. The situation raises broader issues regarding startup governance and consumer accountability," he stated.
BluSmart: Short history of the well-liked service
BluSmart was introduced as a zero-emission ride service that operated under a fleet-ownership model. Unlike competitors like Ola and Uber, where drivers own or lease their vehicles, BluSmart owned its electric cars and employed drivers on a fixed salary with additional incentives.
Customers enjoyed clean, quiet rides, punctual pickups, and consistent pricing, which helped the platform build a loyal customer base.
"The drivers were always courteous. There was no noise, no bargaining, and no last-minute cancellations. I often conversed with the drivers, most of whom seemed content with their jobs," reflected Ghosh, who used BluSmart for nearly two years.
Rachit Gupta, who regularly traveled between Delhi and Gurugram, noted that the well-maintained fleet and timely service kept him engaged with the service. "It was the best alternative to the chaos of Ola and Uber," he recounted.
BluSmart's failure: The biggest losers
For drivers, the current disruption poses significant challenges. Since BluSmart owns the vehicles, many drivers are uncertain about their future. "We were informed that a vendor would inspect our cars tomorrow and that we should not report to work," Dileep, a driver waiting at IGI's T3 terminal, explained to ToI. "If the company collapses, we can't transition to other platforms because we don't own the cars," he said.
Another driver, Arun from Faridabad, shared that he usually earned between Rs 3,200-4,300 for 10-12 hour shifts, including daily bonuses. "It was a good arrangement. I didn't receive any bookings today, and I'm unsure what comes next," he told the newspaper.
**The company subsequently communicated that customers' balance would be refunded within 90 days in case the service doesn't resume by that time.
With a fleet of over 8,500 electric vehicles and more than 5,800 charging stations, BluSmart established itself as a significant player in the urban commute sector across Delhi-NCR, Mumbai, and Bengaluru in a very short time, supported by a network of 10,000 active drivers. The electric vehicle ride-hailing service seemed to have gone offline now, leaving many regular users in a lurch and its vehicles largely off the streets, ToI reported on April 17.
The service disruption came in the wake of an interim order from Sebi on Tuesday, which alleged that Anmol and Puneet Singh Jaggi, the promoters, had redirected funds obtained through loans intended for purchasing electric vehicles for BluSmart, using a portion of the money to buy a luxury apartment in Gurugram.
The order also highlighted other governance issues, such as transactions with related entities and the misuse of corporate funds. Consequently, both promoters were barred from accessing the securities market and from holding director or key managerial positions at Gensol until further notice. Additionally, Gensol was instructed to suspend its proposed stock split.
As Gensol faces increasing scrutiny, concerns are mounting regarding BluSmart's financial viability and operational stability. Although the EV platform is legally a separate entity, its close ties to its promoters have sparked speculation about its future, particularly following reports of potential partnerships with Uber to become a fleet supplier—an option that analysts now suggest may be challenging in light of Sebi's recent actions.
The growth of BluSmart since its inception in 2019 has been remarkable. The platform found its footing in a market previously dominated by established services like Ola and Uber, providing an eco-friendly alternative with fixed pricing, dependable rides, and environmentally friendly vehicles. For numerous passengers, BluSmart became an essential part of their daily commute.
The abrupt halt in services followed a decision by market regulator Sebi, which prohibited the promoters of Gensol Engineering—the parent company of BluSmart—from participating in the securities market due to accusations of fund misallocation and governance issues.
Users' tales
Users across major cities including Delhi, Gurugram, Noida, Bengaluru, and Mumbai began reporting difficulties with the BluSmart app on Wednesday, stating that they were unable to make bookings. In many instances, neither the date nor time slots would load, preventing any bookings from being completed.
Some drivers shared with TOI that they managed to fulfill only pre-scheduled rides, while others received notifications from the company advising them not to come to work on Thursday. By late evening, there was still no official communication from BluSmart, and when approached, a company representative refrained from commenting.
The unexpected disruption caused significant inconvenience for many users. "I couldn't secure a ride at 9 am because the app wouldn't load any slots. I later found out my colleagues were experiencing the same problem," remarked Priyanshi Saha, a professional from Cyber Hub living in Sector 56, Gurugram. "This was the only service I relied on that had fixed fares and an eco-friendly approach."
Another user, Jagriti Kumar, who works in Udyog Vihar, expressed her discontent, stating that BluSmart was her sole dependable option for commuting. "It was consistent, never cancelled unexpectedly, and charged between Rs 400-450 every time. Now, I'll have to deal with fluctuating prices and unpredictable drivers on other services."
Wallet worries for commuters: What to do to get your balance back
Several loyal users voiced their concerns about the funds stuck in their BluSmart app wallets. "I have Rs 1,700 in my wallet, and there's been no word regarding refunds," mentioned Abhijeet Ghosh, a resident of central Delhi. Others like Kanika Tomar (with unspent wallet balance at Rs 2,500), and Ashish Malik (Rs 760), shared similar worries.
"The lack of communication from the company is quite unsettling," Kanika added.**
Consumer lawyer Aditya Parolia has advised users to document their wallet balances with screenshots and to promptly reach out to the company for refunds. "This documentation will assist them in establishing claims if a third-party administrator takes over. The situation raises broader issues regarding startup governance and consumer accountability," he stated.
BluSmart: Short history of the well-liked service
BluSmart was introduced as a zero-emission ride service that operated under a fleet-ownership model. Unlike competitors like Ola and Uber, where drivers own or lease their vehicles, BluSmart owned its electric cars and employed drivers on a fixed salary with additional incentives.
Customers enjoyed clean, quiet rides, punctual pickups, and consistent pricing, which helped the platform build a loyal customer base.
"The drivers were always courteous. There was no noise, no bargaining, and no last-minute cancellations. I often conversed with the drivers, most of whom seemed content with their jobs," reflected Ghosh, who used BluSmart for nearly two years.
Rachit Gupta, who regularly traveled between Delhi and Gurugram, noted that the well-maintained fleet and timely service kept him engaged with the service. "It was the best alternative to the chaos of Ola and Uber," he recounted.
BluSmart's failure: The biggest losers
For drivers, the current disruption poses significant challenges. Since BluSmart owns the vehicles, many drivers are uncertain about their future. "We were informed that a vendor would inspect our cars tomorrow and that we should not report to work," Dileep, a driver waiting at IGI's T3 terminal, explained to ToI. "If the company collapses, we can't transition to other platforms because we don't own the cars," he said.
Another driver, Arun from Faridabad, shared that he usually earned between Rs 3,200-4,300 for 10-12 hour shifts, including daily bonuses. "It was a good arrangement. I didn't receive any bookings today, and I'm unsure what comes next," he told the newspaper.
**The company subsequently communicated that customers' balance would be refunded within 90 days in case the service doesn't resume by that time.
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