India’s vision for a greener commute took a hit this week as BluSmart, the country’s first all-electric ride-hailing service, paused operations in both Bengaluru and the National Capital Region (NCR). The sudden halt has rattled commuters and drivers alike, many of whom had come to rely on the EV cab company for daily transportation.
Founded with the mission to provide zero-emission rides, BluSmart had steadily become a standout in India’s crowded mobility sector. Unlike traditional players like Uber and Ola, BluSmart owned its fleet, hired full-time drivers, and used only electric vehicles—a combination that promised reliability, accountability, and sustainability.
At the time of the shutdown, BluSmart operated a fleet of more than 8,000 EVs across Delhi NCR and Bengaluru, managing thousands of daily rides. But on Wednesday, the company disabled booking services on its app and directed its drivers to return vehicles to fleet hubs, citing “internal operational challenges.” However, sources close to the matter suggest a more complicated reality.
SEBI (Securities and Exchange Board of India) is reportedly investigating co-founder Anmol Jaggi for alleged financial misconduct, including misuse of EV procurement funds via an affiliated company, Gensol. The funds, meant for expanding the electric cab fleet, were allegedly diverted toward personal luxuries like a high-end apartment and other questionable transactions.
The impact on daily commuters was swift. “I use BluSmart every day for work. It’s affordable, punctual, and eco-friendly. This news is a real shocker,” said Sakshi Mehra, a Delhi-based tech professional. Thousands like her are now left scrambling to find an alternative that can match BluSmart’s standards.
BluSmart’s business model was praised for addressing issues that plagued other cab services—frequent ride cancellations, surge pricing, and driver behavior problems. “With BluSmart, you knew you were getting a clean, quiet EV with a polite driver. It was dependable,” said Rajeev Malhotra, a Bengaluru-based entrepreneur.
The suspension has had an equally jarring impact on BluSmart’s driver community. Unlike gig economy drivers, BluSmart employed full-time staff, offering salaries, health benefits, and fixed working hours. “They just told us to return the cars. That’s it. No job, no explanation,” said Ajay Verma, a driver with the company for over two years.
Industry experts say the fallout from BluSmart’s crisis could have broader implications. India is betting big on EV adoption and ride-sharing to combat urban pollution. BluSmart’s setback could dampen investor confidence and slow momentum in the electric mobility sector unless corrective steps are taken quickly.
Meanwhile, BluSmart has issued a statement promising refunds for customers who had pre-booked rides or packages, with a 90-day processing window. It remains unclear whether services will resume or if the shutdown is permanent.
What’s evident is the urgent need for tighter regulations and financial transparency in India’s mobility and EV sectors. Until then, the promise of a clean, green commute has taken an unfortunate detour.
