As BluSmart crumbles, can others take that space?

A sustainable and environment-friendly mobility platform that entered in 2019 lost its credibility. Their 8000 cabs fleet across India are grounded or barely ferrying. A classic case of bubble burst.

We all wonder what swallowed them?

But it’s best to evaluate the aftermath and then glance into the past.

The Aftermath
In the first week of May 2025, BluSmart drivers began street protests demanding compensation and job guarantee. Protestors demands severance pay, employment guarantees, and the right to form unions to safeguard the rights of gig workers.

While this protest was going on, a big bombshell like news spread like wildfire. App-based electric taxi service provider Evera Cabs (Prakriti Mobility) announced the repossession of 500 electric cabs earlier operated by troubled BluSmart. In the comings weeks, 500 more cabs will be rebranded as Evera Cabs taking the total number to a 1000 or so.

But as the first week of May came to end, the Delhi HC barred Gensol Engineering and BluSmart from creating third-party rights over 220 additional EVs. The order was passed after hearing a petition filed by SMAS Auto Leasing and Shefasteq OPC that blamed Gensol and its subsidiary BluSmart of violating conditions regarding leasing and for payment default.

The impact on the market
The dissolution of BluSmart created a space for other operators to share this pie of BluSmart commuters. Since they had a high volume operations in NCR, the operators of cab services in Delhi can expect to share this chunk of market offering electric vehicles. But they need to act quickly. Evera found a foothold and they immediately made the move (after ofcourse Uber declined BluSmart’s offer for acquisition).
It remains to be seen if regional players, especially in NCR, can tap into this potential market left behind by BluSmart.

The acquisition conundrum
Uber refused BluSmart’s offer for takeover and bailout. Evera Cabs may have made the commitment, but the rebranding a defaulter brand can also backfire. The payment frauds and loan eviction may mean that the cabs in their fleet maybe confiscated if found guilty.

Experts say that BluSmart has found its grave and resurrection is not on the cards. Therefore, other players wanting to acquire BluSmart or buy their grounded fleet, or invest in some other way may not want to go forward with this deal.

And as the new order by Delhi High Court made its way, everything appears topsy-turvey for the beleaguered BluSmart.

Can they revive?
There doesn’t look like any hope for BluSmart. Banks are after them. Their cab drivers are on the roads protesting. They may face more legal battles in upcoming days as this drama unfolds. But their revival is to be least expected. Amanpreet Babbar from Gurugram runs a fleet over 40 electric cabs in NCR. “BluSmart wanted to annihilate their competition and went berserk. So they went on a buying spree but later realised they couldn’t pay back. They had to fold down at some point.” Other cab operators think on the same lines too. No one can say if BluSmart can revive back but this bubble looks like have bursted for good.