• Uber is reportedly in early talks to acquire BluSmart as its parent company, Gensol Engineering, faces liquidity challenges, though BluSmart denies any negotiations.
  • Despite raising significant funding, BluSmart has struggled with high capital costs, government subsidy delays, and growing competition from Uber and Ola in the EV ride-hailing sector.

Uber is reportedly in preliminary discussions to acquire BluSmart, an electric vehicle-based ride-hailing service, as BluSmart’s parent company, Gensol Engineering, considers exiting the capital-intensive business, according to sources cited by Moneycontrol.

However, BluSmart has denied any such negotiations.

"BluSmart categorically denies any discussions or negotiations regarding an acquisition by Uber. The report suggesting such a development is entirely speculative and unfounded. As India’s leading EV ride-hailing and charging infrastructure platform, BluSmart remains focused on scaling its operations, expanding its footprint, and driving sustainable mobility forward," a company spokesperson stated in response to Moneycontrol’s queries.

Gensol Engineering, primarily known for its solar engineering, procurement, and construction (EPC) business, launched BluSmart in 2019 as a fully electric ride-hailing alternative to conventional cab services like Uber and Ola. Despite positioning itself as a premium, no-surge pricing service with a focus on corporate clients and airport transfers, BluSmart has faced financial challenges.

The company’s model of owning and operating its fleet—rather than using driver-owned vehicles, as Uber and Ola do—has led to high capital expenditure. Costs related to fleet acquisition, EV charging infrastructure, and driver incentives have further strained the business.

While BluSmart has secured funding from investors, including bp Ventures, profitability has remained a challenge. In 2024, it raised approximately $24 million from existing investors, including contributions from its founders and leadership team. In total, the company has raised around $109 million across its seed and Series A funding rounds.

Additionally, the firm has built an EV ecosystem with over 4,000 chargers across 35 locations in Delhi-NCR and Bengaluru, and operates a fleet of approximately 6,000 EVs. BluSmart claims to have surpassed a $50 million annual revenue run rate, growing at over 100% year-on-year.

Despite these advancements, the company has faced hurdles, including delays in government subsidies and increased financing costs for EV purchases. Competition has also intensified as Uber and Ola continue expanding their own electric vehicle fleets.

Reports suggest that BluSmart has struggled to secure fresh funding, potentially influencing Gensol’s decision to reassess its role in the business.

Uber has declined to comment on the potential acquisition. The Economic Times first reported the development.

Edited by Harshajit Sarmah