BluSmart Halts Ride Bookings in Delhi-NCR, Bengaluru Amid Gensol Probe

India’s electric mobility darling BluSmart has hit a major speed bump. The company has suspended all ride bookings through its app in major cities like Delhi-NCR and Bengaluru, sparking speculation and concern about its future.

While the app is still live on the Play Store, users report being unable to select time slots or travel dates—effectively freezing the service.

The SEBI-Gensol Fallout

At the heart of BluSmart’s crisis is a regulatory storm involving Gensol Engineering, its financial backer and EV leasing partner. Earlier this week, SEBI revealed that Gensol allegedly diverted ₹200 crore, funds meant for electric vehicle purchases, triggering alarm bells across the industry.

This development has dealt a serious blow to BluSmart, whose business model is closely linked to Gensol’s operations. With mounting scrutiny and potential funding issues, BluSmart’s operational capabilities have come under pressure.

From Ride-Hailing to Uber Fleet Partner?

In response to the turmoil, BluSmart is reportedly considering a strategic pivot. As per news reports, the company may exit the ride-hailing business entirely and reinvent itself as a fleet partner for Uber. The shift is expected to be gradual, with 700–800 cars transitioning initially.

What This Means for the Industry?

It highlights the fragile ecosystem around EV startups, which often rely heavily on partner companies for financing, leasing, and operational support. It also underscores the growing role of regulatory oversight in maintaining transparency and accountability in the rapidly evolving mobility sector.

Read more: Gensol Share Price Crash: What Retail Shareholder Should Know?

Conclusion

BluSmart’s suspension of ride bookings and its potential shift to a fleet partnership with Uber marks a significant turning point for the company and the broader electric mobility sector.

The ongoing SEBI probe into Gensol Engineering, BluSmart’s financial partner, has exposed vulnerabilities in the business model of EV startups that depend heavily on external funding and partnerships.

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