How BluSmart took on the might of Ola and Uber, disrupting the super competitive cab-hailing business
In the cut-throat world of cab-hailing, challenging the seasoned giants Ola and Uber seemed like a David versus Goliath saga—until BluSmart Mobility decided to rewrite the story. Suddenly, the landscape shifted. BluSmart not only proved that there’s space for innovation but also redefined the game.
It all goes back to 2017 when Punit K. Goyal, a successful entrepreneur in the solar power plants industry, found himself engaged in a pivotal conversation with Brent Callinicos, former CFO of Uber, during a dinner in Los Angeles. The meeting left Goyal convinced that the future of mobility lay in electric solutions, tightly woven into an energy-infrastructure-mobility network. Returning to India with a vision of setting up a born-electric, integrated full-stack EV ride-hailing service and EV charging network, Goyal, now 36, shared his idea with Amol Jaggi, the Founder of Gensol Engineering—an engineering procurement and construction and solar advisory firm—with whom he had previously collaborated on solar power plant projects.
Meanwhile, the cab-hailing market leaders in India were gradually shifting away from the incentives-driven model, and that resulted in a noticeable decline in service quality, marked by poorly maintained cabs, frequent cancellations, and extended wait times.
For Jaggi, the gaps in the ride-hailing sector became apparent. The duo invested two years, immersing themselves in the ride-hailing world, jet-setting across the US and beyond to meet with charging companies and EV manufacturers. The result? An all-electric ride-hailing service that hit the streets in mid-2019.
“We realised the challenges in the ride-hailing industry were one too many. On the user side, we found that high number of ride cancellations, unhygienic cars and unpredictable fares were major pain points. On the driver partner side, we found that the drivers were unhappy with the burden to own and maintain the assets, and it was affecting their stable livelihood,” says 38-year-old Jaggi.
Soon Tushar Garg, Rishabh Sood, and Anirudh Arun joined their mission as co-founders.
The inaugural fleet of EV cars initially operated on the Uber platform, paving the way for the start-up to eventually craft its own app. Emerging as an independent entity, the company introduced fixed prices and scheduled rides, addressing user apprehensions related to surge pricing and cancellations.
As the next step, they had to solve for the obvious charging challenge. The biggest hurdle to widespread EV adoption lay in the charging infrastructure, and it proved to be both a bottleneck and a significant opportunity. The company soon launched Charging Superhubs, now strategically positioned in prime locations, spanning 1.3 million sq. ft, serving the entire electric mobility ecosystem. The company currently owns and operates over 4,000 charging stations.
Thus, BluSmart is shaping an integrated energy-infrastructure-mobility and technology business, aimed at achieving widespread decarbonisation of mobility. Today, the company runs India’s largest EV ride-hailing service, with more than 5,500 cars zipping across the bustling mobility markets of Delhi NCR and Bengaluru.
BluSmart thrives on enhanced profitability, thanks to its larger-ticket trips and cost-efficient fleet. Leasing EVs at an institutional level ensures a price advantage coupled with lower fuel costs for minimal cash burn. Operating on par with competitors’ charges, BluSmart maintains a cost structure 30-40 per cent lower, steering towards its profitability goal. This allows the company to deliver on-time, professional, and clean cabs—all at prices comparable to its competitors.
For drivers, the company alleviates a significant financial burden by eliminating the necessity to own cabs. It also provides them insurance coverage and essential amenities such as resting places and dining facilities. Since its inception, BluSmart has onboarded more than 18,000 driver partners.
The company credits its indigenously built technology stack for successfully executing 10 million electric trips, covering over 330 million electric km, saving nearly 24,000 metric tonnes of CO2. The company also claims that it has crossed $50 million in annual revenue run-rate and is growing at more than 100 per cent year-on-year.
“As a start-up with the ambition to disrupt public transportation, we knew that we had to do it in a way that not only actively improves the mobility ecosystem but also takes emissions into consideration. Our vision has been to decarbonise mobility at scale,” says Jaggi.
Moving ahead, the company’s expansion strategy involves scaling across Delhi NCR and Bengaluru in the near term.
“We aim to expand our EV fleet to 8000 cars by next year, and further strengthen our charging infrastructure to accommodate the growing demand. Additionally, creating more earning opportunities for our driver partners, particularly increasing the representation of female drivers, is a key short-term goal,” he adds.
In its forward-looking vision, BluSmart isn’t merely providing rides; it’s a journey towards a greener tomorrow.
@binu_t_paul
