Is BluSmart Shutting Down Soon? What’s at Stake for Its Users

BluSmart, once celebrated as a cleaner, smarter alternative to ride-hailing giants Ola and Uber, finds itself in troubled waters. Reports have suggested that its founders diverted funds for purposes unrelated to the business. Amidst this turbulence, unconfirmed reports hint that BluSmart may be preparing to wind down its independent operations and instead operate as a fleet partner for rival Uber 

How BluSmart differs from rivals?

Over the past few years, BluSmart carved out a loyal base of users who appreciated its no-surge pricing, clean vehicles, and disciplined drivers.

“Unlike traditional cab services, BluSmart built a reputation around reliability—no surge pricing, punctuality, and a fully electric fleet. For many urban professionals, especially in Delhi-NCR and Bengaluru, it became a go-to service for airport runs and office commutes. The fallout, however, threatens this convenience,” said a former company official who requested anonymity.

A media report has claimed that BluSmart’s shareholders have approved a phased transition of its fleet to Uber, starting with 700–800 cars. Both the company's founders — Anmol Jaggi and Punit Goyal — did not respond to calls made by Republic Business .

This transition raises pressing questions: What happens to the tens of thousands of daily commuters who embraced BluSmart for its clean energy promise and consistent service?

Analysts suggest that the issue now extends beyond corporate governance—it’s about consumer trust. Over the past few years, BluSmart cultivated a loyal base of users who sought an escape from the chaos often associated with Ola and Uber. Riders valued its fixed pricing, clean vehicles, and disciplined drivers.

Also Read: ‘Victim’ Ashneer Grover Defends Rs 1.5 Cr BluSmart Investment Amid SEBI Probe Into Gensol | Republic World

What happens to BluSmart users?

Many analysts are of the view that if BluSmart scales down operations or if trust erodes further, users may reluctantly return to Ola or Uber. But for many, the switch won't be simple. The appeal of BluSmart wasn't just in transportation—it was in offering a predictable, eco-conscious experience.

With little serious competition in the EV ride-hailing space, BluSmart’s troubles create a vacuum. Despite their reach, Ola and Uber haven’t matched BluSmart’s consistency in electric mobility or pricing transparency. Unless they move quickly to address this gap, commuters may not transition willingly, said an executive at a leading automaker.

Avik Chattopadhyay, co-founder of brand consultancy Expereal, remarked, “People will hate to see them go down due to the allegations doing the rounds. Another factor I think that has not been written about is that their fleet is largely made up of Gen 1 electric vehicles. They are not the best in the business and should be close to scrap value now. That has been another undoing.”

BluSmart’s operating model—owning its own EV fleet—still holds value. If services remain stable, loyal users may weather the storm, especially if the company responds swiftly and transparently to the allegations.

Chattopadhyay added that a consortium committed to quality service could revive the brand. “There is talk of Uber being an option. If so, create an Uber Blu, just like their Uber Black. Do not mix it into the normal Uber, which no longer sets the benchmark for customer centricity.”

Commuters express their anguish

Across social media, loyal BluSmart users have voiced disappointment and concern—some holding out hope, others fearing the worst.

Personal tech columnist Tushar Kanwar wrote, “Another service one got used to, lost to mismanagement. The clean cars, courteous drivers, and the sheer reliability of the cabs turning up at the right time—stuff that the brand had built over the years—will all be missed.”

Echoing this, Tushar Tuteja, an engineer and IIT Delhi alumnus, said, “More than the money in the wallet, I am more concerned about driver partners who will be out of jobs until the saga plays out. I had so many good conversations with many of them who saw BluSmart as a ray of hope, a beacon of trust. They were well respected. Losing all of this won't be easy for them.”

For some families, BluSmart became more than a service—it was part of daily life. Parminder Singh, co-founder and CEO of Kampd, shared that his elderly parents in Delhi rely solely on BluSmart. “They refuse to keep a car and driver, saying ‘BluSmart hai na.’ Whenever they need to go out and I offer to book a premium car, they respond, ‘BluSmart hai na, rental kar lenge.’ I don't know exactly what went wrong, but I know they'll be heartbroken when I tell them, ‘Ab BluSmart nahi hai.’”