Electric cab service provider BluSmart has suspended its operations in major Indian cities, including Delhi, Bengaluru, and Mumbai, following regulatory action by the Securities and Exchange Board of India (SEBI). This sudden halt in services has not only impacted passengers but also put the jobs of thousands of BluSmart drivers at risk.
The company confirmed that it stopped accepting ride bookings on Wednesday evening, and the suspension continued into Thursday. In an official communication to its customers, BluSmart stated, “We have decided to temporarily halt bookings on the BluSmart app.” This decision has created considerable disruption for commuters who relied on the platform for daily travel.
Many users expressed frustration on social media, citing the inconvenience and lack of clarity around the service shutdown.
The suspension of services comes in the wake of a SEBI investigation into Gensol Engineering, a renewable energy firm associated with BluSmart. The market regulator has initiated a forensic audit against Gensol and barred its promoters, brothers Anmol Jaggi and Puneet Jaggi, from participating in the stock market. This action has had a direct impact on BluSmart, which is connected to the Jaggi brothers through shared business interests.
With BluSmart exiting the market for the time being, rival companies like Ola, Uber, Rapido, and InDrive are expected to see a surge in demand. Among them, Uber is likely to benefit the most, given its already significant market share and user base.
Industry analysts believe this shift could further strengthen Uber’s position in India’s urban mobility space. Investor sentiment also appears to be turning positive for Uber, as it continues to dominate key metrics in the ride-hailing sector.
As per a January report from brokerage firm Motilal Oswal, Uber holds a commanding lead in the Indian taxi service industry. The company reportedly completes an average of 880,000 rides per day and boasts the highest number of active monthly users. With over 500 million app downloads globally, Uber is far ahead of its local competitors such as Ola, Rapido, and InDrive, each of which has approximately 100 million downloads.
BluSmart’s sudden withdrawal from the market has exposed the fragility of startups operating in the electric mobility space, especially those tied to ongoing legal or financial investigations. While the company has termed the suspension “temporary,” there is no official timeline for when or if services will resume.
Until then, traditional ride-hailing platforms are expected to fill the gap left behind, and consumer preferences may shift further toward more established players like Uber and Ola.
