Uber pauses ride with BluSmart

Action against Gensol promoters, who also operate the ride-hailing firm, to hurt Uber's EV push

- Peerzada Abrar Bengaluru, 18 April

A regulatory investigation into financial mismanagement at BluSmart Mobility has thrown a wrench into Uber's plans to deepen its electric vehicle (EV) push in India. The Securities and Exchange Board of India (Sebi) recently flagged fund diversion by BluSmart founders Anmol Singh Jaggi and Puneet Singh Jaggi, leading to an operational halt at the EV ride-hailing firm.

Uber, which had at one point considered acquiring BluSmart, is now pausing all engagements with the company, according to people familiar with the matter. The uncertainty has also slowed down Uber's broader EV rollout in the country, which included plans to onboard roughly 8,000 BluSmart vehicles to its platform.

"A month ago, there were discussions between Uber and BluSmart executives about a possible acquisition, but those talks fell through," said a person familiar with the matter. "But Uber recently was exploring a partnership to onboard BluSmart's EV fleet. However, after Sebi's findings, Uber is now likely to pause all engagements with the company," he said.

Uber's EV ambitions in India are focused on accelerating the shift to zero-emission mobility with a goal of electrifying every ride on its platform by 2040. The company plans to deploy 25,000 EVs on its platform over the next few years.