Uber Reportedly in Talks to Acquire EV Ride-Hailing Startup BluSmart

In a major development in India’s electric mobility sector, global ride-hailing major Uber is reportedly in early-stage talks to acquire BluSmart, a startup known for its fully electric ride-hailing service. The discussions are said to have surfaced as Gensol Engineering, BluSmart’s parent company, faces liquidity pressures and explores options to streamline its business.

Uber’s Strategic Interest Amid Gensol’s Financial Strain

According to a report by The Economic Express, Uber is considering an acquisition of BluSmart as part of its strategy to expand its electric vehicle (EV) footprint in India. However, BluSmart has categorically denied being in any acquisition discussions with Uber. Uber, when approached for comment, also declined to respond.

The acquisition speculation arises during a turbulent period for Gensol Engineering, which has been struggling with rising debt and cash flow issues. As a result, it is reportedly reassessing its continued involvement in the high capital-expenditure EV ride-hailing space through BluSmart.

BluSmart’s Unique Position in the EV Market

Founded in December 2019 by Anmol Jaggi, Punit K Goyal, and Puneet Singh Jaggi, BluSmart positioned itself as a premium, no-surge pricing ride-hailing platform focused on zero-emission transport. Operating primarily in Delhi-NCR and Bengaluru, BluSmart targeted corporate clientele and airport transfers, which helped create a steady stream of demand in its initial phases.

BluSmart differentiated itself from competitors like Uber and Ola by owning and operating its entire EV fleet, unlike others that follow the driver-ownership model. While this strategy allowed greater control over service quality and fleet maintenance, it also significantly increased capital expenditure and dependency on external funding.

Capital Requirements and Funding Struggles

BluSmart’s model, though innovative, has encountered challenges due to its high capital intensity, reliance on government subsidies for EV adoption, and rising costs of vehicle financing. Delays in the disbursement of subsidies and macroeconomic headwinds have added pressure to BluSmart’s financial health.

In 2024, BluSmart managed to raise about $24 million from its existing investors, including BP Ventures, as well as additional contributions from its founders and leadership team. To date, the company has raised around $109 million across its seed and Series A rounds.

Despite funding challenges, BluSmart claims to have crossed a $50 million annual revenue run rate, with year-on-year revenue growth exceeding 100%. The company has also built a robust EV infrastructure, comprising over 4,000 EV chargers across 35 charging hubs in Delhi-NCR and Bengaluru.

Gensol’s Role and Reassessment

Gensol Engineering, originally known for its solar EPC (Engineering, Procurement, and Construction) business, ventured into electric mobility by supporting BluSmart. However, with rising financial stress, Gensol is now reportedly reconsidering its stake in BluSmart.

As part of this re-evaluation, the company was earlier in talks with Refex Green Mobility to transfer ownership of nearly 3,000 EVs, a deal that eventually fell through due to “evolving commitments” from both parties.

Gensol currently holds a debt of over ₹1,100 crore, against a reserve of only ₹589 crore. To bridge the gap, the company’s board approved a ₹600 crore fundraising initiative in March 2025, but that alone may not be sufficient to ease the liquidity pressure.

Future Outlook

Whether or not Uber’s acquisition of BluSmart materializes, the conversation highlights the growing interest of global mobility players in India’s EV ride-hailing market. With government push for cleaner transportation and rising urban demand, India remains a key battleground for EV-based mobility services.

For BluSmart, the path forward will depend on its ability to secure stable funding, maintain its EV infrastructure, and potentially pivot its business model to reduce capital dependency. A strategic acquisition by Uber, if confirmed in the future, could offer BluSmart both financial support and operational synergy—particularly as Uber also moves towards electrifying its fleet in India.

For now, all eyes are on how BluSmart and Gensol navigate this critical period—amidst funding gaps, leadership exits, and intensified competition in India’s electric mobility ecosystem.