Uber wants to acquire Indian EV ride-hailing service BluSmart: Report
What's the story
Global ride-hailing giant Uber is looking to acquire India-based electric vehicle (EV) cab service BluSmart, Moneycontrol has reported.
The move comes as BluSmart's parent company Gensol Engineering is struggling financially.
However, despite the rumors of this acquisition deal, BluSmart has strongly denied any talks or negotiations with Uber for the same.
Market dynamics
BluSmart's unique position
Founded in 2019, BluSmart was launched as India's answer to Uber, providing fully electric cabs as a green alternative in the fast-growing urban transport market.
The company has made a name for itself by deploying its fleet of more than 5,000 vehicles across Delhi-NCR and Bengaluru.
However, it has encountered major challenges such as high costs of fleet acquisition and EV charging infrastructure development.
Economic challenges
Financial struggles and operational pressures
Despite raising significant funding from investors such as BP Ventures and other institutional backers, BluSmart has been unable to turn profitable.
The company heavily depends on subsidies as well as government incentives for EV adoption, which has put additional pressure on operations amid delays in subsidies and increasing financing costs for EV purchases.
Recent reports suggested BluSmart struggled to raise fresh funding, possibly prompting Gensol to rethink its role in the business.
Strategic move
Why does Uber want BluSmart?
Uber's interest in acquiring BluSmart comes as part of its strategy to expand its EV offerings under the Uber Green service. The possible acquisition could bolster Uber's presence in India's growing EV ride-hailing market, and give it an edge over competitors like Rapido.