BluSmart to significantly expand its electric cars fleet to compete with Uber, Ola

BluSmart, an all-electric ride-hailing service startup, is expanding its network of electric vehicles (EVs) to compete with Uber and Ola. The company plans to add hundreds of new electric vehicles a month as it tries to beat Uber and Ola in the electric cabs segment.

The company aims to encourage urban India towards a sustainable mode of transport and also to provide them affordable and safe rides. The Gurugram-based company, founded in 2019, is currently operating around 4,500 electric cars in Delhi and Bengaluru.

Uber launched its electric cab service “Uber Green” recently in India and it targets to reach 10,000 electric two-wheelers by 2024. On the other hand, Ola has also been planning to add 10,000 electric vehicles to its ride-sharing network.

BluSmart's growth curve

BluSmart has gained a lead in the rapidly growing electric vehicle segment. According to Punit Goyal, co-founder of BluSmart, the company is increasing its EV fleet substantially and aims to add 600 to 800 new cars a month.

Goyal also highlighted the urgency of EVs in cities like Delhi as the air pollution is a major concern in the national capital.  

BluSmart buys its own vehicles and then contracts drivers to avoid high cancellations and erratic service.  

However, the business model of BluSmart is expensive, so the company has secured $120 million in equity and debt funding from different investors such as BP ventures and Bollywood star, Deepika Padukone.

The BluSmart model

BluSmart as an EV business generates annual revenue of $40 million which is currently operating at a loss. However, The company aims to become profitable by the end of this year.

The startup has secured financing for 15,000 cars and the management is in talks with investors like Macquarie from Australia that could add funding for expanding the cars to 25,000 instead.