BluSmart, a startup offering an all-electric ride-hailing service, is expanding its fleet of electric vehicles (EVs) in order to compete with Uber and Ola. With the goal of surpassing its competitors in the electric cab segment, BluSmart plans to add several hundred new EVs each month.
The company’s mission is to promote sustainable transportation and provide affordable and safe rides for urban India. Established in 2019 and currently operating around 4,500 electric cars in Delhi and Bengaluru, BluSmart has gained an advantage in the rapidly growing EV market.
In comparison, Uber recently launched its electric cab service “Uber Green” in India, aiming to have 10,000 electric two-wheelers by 2024, while Ola plans to add 10,000 electric vehicles to its ride-sharing network.
Punit Goyal, co-founder of BluSmart, stated that the company is significantly expanding its EV fleet, targeting the addition of 600 to 800 new cars each month. Goyal emphasized the urgency of EV adoption in cities like Delhi due to the pressing issue of air pollution.
BluSmart follows a unique business model where it purchases its own vehicles and contracts drivers to ensure consistent service and minimize cancellations. However, this model can be costly, prompting BluSmart to secure $120 million in equity and debt funding from investors including BP Ventures and Bollywood star Deepika Padukone.
Currently generating an annual revenue of $40 million, BluSmart is operating at a loss but aims to achieve profitability by the end of this year. The startup has obtained financing for 15,000 cars and is in discussions with investors like Australia’s Macquarie to potentially expand the fleet to 25,000 vehicles.
