Pulling the Plug

The much-awaited EV revolution in the ride-hailing space has yet to take place. And it's not going to happen any sooner

- Rakshit Kumar

For 57-year-old Seema Dhawan using a BluSmart cab was a conscious decision. “I run an NGO by the name The Roadsides for clean and green roadsides. Using BluSmart went with my ethos,” she says. But Dhawan will have to slow down on her efforts to lessen fossil-fuel pollution.

Out of the blue in April this year the all-electric ride-hailing service hit the brakes and suspended service. Barely 24 months ago, India’s urban mobility sector was riding a green wave. Four-year old BluSmart was gearing up to challenge Ola and Uber with a bold promise: clean, affordable and reliable commutes.

With BluSmart's 5,000-strong electric-vehicle (EV) fleet already zipping across Delhi-NCR and Bengaluru by January 2023, and ambitious plans to scale to 1 lakh cars by 2025, it seemed like the EV revolution was knocking on the door for India’s ride-hailing services.

The timing couldn't have been better. Public sentiment was turning against legacy players over inconsistent service while regulators were getting restless over pollution from petrol and diesel fleets. BluSmart’s entry infused fresh energy into the market.

The same year (2023), Ola announced its EV plans while Uber rolled out Uber Green and signed a massive EV deal with Tata Motors. Suddenly, the electrification of Indian ride-hailing didn’t just seem possible, it seemed inevitable.

Caution Ahead

But behind all this buzz, a more sobering reality was beginning to emerge. Drivers were struggling with long charging times, battery issues and higher operating costs. Above all, the government subsidies that had sweetened the EV deal were vanishing for electric four-wheelers. And by early 2025, the early momentum seemed to fizzle as quickly as it had ignited.