Indian Taxi Startup BluSmart Challenges Uber to an EV Battle

With investments in an all-electric taxi fleet and a concerted campaign to lure customers and drivers away from the competition, the Indian Taxi startup BluSmart is vying with Uber and Ola for market share in the country.

In the upcoming years, Prime Minister Narendra Modi’s administration is poised to make significant reforms to India’s transportation industry, with significant implications for ride-hailing businesses.

Market leaders Uber and Ola, which is funded by SoftBank, are expected to find it difficult to make the full conversion to electric vehicles (EVs), especially as both businesses struggle with driver retention and customer satisfaction.

By directly monitoring its fleet and drivers, newcomer BluSmart intends to take advantage of the opportunity by beating its rivals who employ combustion engines in terms of electrification, cleanliness, and dependability. To begin with, reservations booked using the BluSmart app cannot be cancelled by drivers.

With immaculate automobiles that come on time, BluSmart has raised the quality of its services. According to Jasmeet Khurana, who is in charge of the World Economic Forum’s (WEF) mobility decarbonization programme, you may accomplish that by having your own fleet. It used the electricity switch as a means of entry.

A March private BluSmart investor presentation that Reuters obtained claims that “Uber is losing drivers, riders, and market share in India” and that its growth model of driver-owners is “crashing” due of rising fuel prices.

Although Prabhjeet Singh, the company’s India CEO, told Reuters in February that the company was adding more drivers and vehicles each month and will keep addressing service issues, Uber did not respond to a request for comment regarding this piece.

Both businesses had enormous success in India, but they are currently struggling due to high rates of rider cancellations and driver discontent over reduced financial incentives that caused many of them to leave. Upon being contacted, Ola opted not to comment.

80 percent of Delhi’s 2,750 new electric taxis that were registered between January and October 2022 belonged to BluSmart. Data from the consultancy Redseer shows that 25% of the city’s new taxis are electric vehicles, up from just 3% in 2019.

Atop a multi-level parking structure guarded by private security in a posh area where more than 100 vehicles receive full washing every evening, one of BluSmart’s 22 charging and parking hubs in the city’s capital is located.