Connect with us
In focus Magazine March 2025 advertise

Business

Report: BluSmart Transforms into Uber Green Amid Financial Scandal 

Published

on

Report: BluSmart Transforms into Uber Green Amid Financial Scandal 

BluSmart, once hailed as a frontrunner in the country’s EV ride-hailing sector, has reportedly begun rebranding its fleet under Uber Green in Bengaluru. While the optics suggest a green alliance, the reality behind the move paints a far more complicated picture. 

Co-founded by Gensol’s Anmol Singh Jaggi, BluSmart has been navigating choppy waters in recent weeks. The company halted bookings in key markets—Delhi-NCR, Bengaluru, and Mumbai—following a financial scandal involving its backer, Gensol Engineering. SEBI flagged the misuse of Rs 262 crore from a Rs 900 crore loan, reportedly diverted to fund luxury real estate purchases, including a high-end DLF Camellias apartment. In the fallout, BluSmart was forced to suspend operations temporarily and issue refund promises to its customer base. 

Now, BluSmart is said to be in discussions with Uber India to lease between 8,000 and 10,000 electric vehicles under the Uber Green brand, shifting its operational identity from competitor to collaborator. While this may offer Uber a rapid scale-up of its green mobility initiative, BluSmart appears to be tactically retreating from its standalone ambitions. 

According to on-ground reports, BluSmart’s cabs are already being repainted with Uber Green branding in Bengaluru. However, this strategic pivot isn’t an acquisition—at least not yet. For now, BluSmart is adopting a leaner operational model, leasing part of its fleet while keeping full ownership off the table. 

Internally, the company maintains this transition is due to a “vehicle audit.” Employees were told operations would pause temporarily, and approximately 200 idle EVs were spotted at a Sarjapur charging facility. The company’s communication to its customers was equally cautious, stating that bookings would remain closed, with refunds initiated if services do not resume within 90 days. 

At face value, this rebrand could be seen as a bid for survival, but it also opens up strategic conversations. For Uber, this provides instant access to an EV fleet and trained drivers—boosting sustainability credentials without the overhead of asset acquisition. For BluSmart, this is an opportunity to reset, downsize, and potentially clean house amid reputational damage. 

However, the implications go deeper. This incident highlights the fragility of scaling capital-intensive startups in India’s mobility ecosystem, especially those heavily reliant on funding with opaque governance. BluSmart’s pivot also raises questions around long-term differentiation and viability in a hyper-competitive market dominated by capital-rich giants. 

As Uber Green quietly absorbs BluSmart’s operational skeleton, the move may be seen not just as a rebrand, but as an industry cautionary tale—where aggressive expansion, governance lapses, human greed, and brand pivots collide.