Uber in talks to acquire BluSmart Mobility

New Delhi, India (Urban Transport News): Uber Technologies is said to be in the early stages of discussions to acquire BluSmart Mobility, a Gurugram-based all-electric cab service operator, according to a report by the Economic Times. The potential acquisition could bolster Uber's presence in India's rapidly growing electric vehicle (EV) ride-hailing market, as the company seeks to consolidate its position amidst increasing competition in the urban mobility sector.

The potential deal comes at a time when Uber faces heightened competition from companies like Rapido, which has expanded into three- and four-wheeler services. Uber CEO Dara Khosrowshahi previously acknowledged the intensifying competition in India, emphasizing the need for the company to remain agile in such a dynamic market.

BluSmart operates a fleet of over 5,000 all-electric vehicles across key cities including Delhi-NCR, Mumbai, and Bengaluru, with further expansion into Dubai. The fleet is sourced from Tata Motors and MG Motor and is owned by Gensol Engineering, which leases the vehicles to BluSmart. The company also manages an extensive EV charging infrastructure in NCR and Bengaluru, positioning itself as a prominent player in the EV mobility sector.

However, reports of a potential acquisition come at a time when BluSmart's parent company, Gensol Engineering, is facing financial difficulties. The company recently announced plans to raise ₹600 crore to resolve its liquidity challenges, including selling vehicles to Refex Industries. Gensol has also experienced a downgrade of its debt facilities to "default" status by ICRA and CARE, further compounding its financial woes.

Founded in 2019, BluSmart has carved a niche for itself as a premium, no-surge pricing service that offers sustainable transportation options. Despite raising over ₹1,000 crore in funding from investors like BP Ventures and Zurich-based ResponsAbility, the company has faced challenges with high capital expenditure and delays in government subsidies for EV adoption. BluSmart's annualized revenue run rate currently stands at ₹70 crore.

Uber's interest in BluSmart aligns with its ongoing efforts to expand its EV offerings through Uber Green, which currently operates in the same cities where BluSmart is active. Acquiring BluSmart's EV fleet and charging infrastructure could give Uber a competitive edge in India's burgeoning EV market.

However, BluSmart Mobility has denied the acquisition claims. In a statement to the Times of India, a spokesperson for the company said, "We categorically deny any discussions or negotiations regarding an acquisition by Uber. The story is purely speculative and unfounded. As India’s leading EV ride-hailing and charging infrastructure platform, BluSmart remains focused on scaling operations, expanding its footprint, and advancing sustainable mobility."

While the future of the discussions remains uncertain, the report underscores the growing interest in the EV mobility space in India, where ride-hailing giants like Uber are actively working to strengthen their sustainable transportation offerings.