BluSmart scraps zero surcharge policy, introduces “Rush Hours” pricing

Peer pressure: EV cabs and charging stations startup BluSmart Mobility has introduced a surcharge on rides in rush hours.

The app shows a difference of about Rs 50 for regular and airport rides in the classic and premium segments.

In a detailed chart, the EV ride-hailing platform has introduced the surge for rush hours, i.e. 8.30 to 10.30 in the morning, and 5.30 to 8.00 in the evenings on weekdays.

The rush hour coincides with office timings for corporates. There is however no change on rentals.

The app also allows pre-booking for rides, which often results in peak slots not available for instant booking like contemporaries Ola and Uber.

"To uphold our commitment to fare transparency, BluSmart has introduced a fixed pricing structure for different times of the day for our customers. This change is a strategic move to align with industry benchmarks. Our new pricing policy ensures that our customers pay what they see on the app, maintaining fairness and consistency. BluSmart’s core promise of zero ride denials, reliable and safe rides, and transparent fares remain intact," Anirudh Arun, Co-founder and Chief Operating Officer of BluSmart said in a statement on the development.

According to BluSmart's website, the firm claims no surge pricing as it promises “better customer experience (zero ride denials, zero surge pricing, high quality service, highest standards of safety and sanitisation).”

The move triggered reactions on social media, which were addressed by co-founder and CEO of the company, Anmol Jaggi.

“Surge price is unpredictable, our pricing is just a true and transparent reflection of effort by driver partners during rush hours,” he said. 
Surge is non-transparent & arbitrary, what BluSmart has done is to make it clear & upfront on what the pricing would be, he added.

Responding to a query on the surge on X, he said the rush-hour fare would be about 15 percent higher and the so-called relaxed hour would be cheaper as well.

BluSmart had raised around $24 million in a Series A round in December 2023 led by existing investors BP Ventures, as well as the founders and leadership team of BluSmart.  The 2019-founded company is valued at $113M as per data platform Tracxn, and procures its cars from Tata Motors.

The company aims to expand its fleet to 10,000 vehicles by March 2024, doubling its count of 5,000 cars.