New Delhi: EV Ride-Helling Company Blousmart is facing an important operating shake-up, in which users are reporting extensive booking issues in Delhi-NCR, Bengaluru and Mumbai.
The disintegration allegedly stems from the decision to suspend ride-lingering services in select areas of Blousmart as it converts its fleet into Uber’s platform, marking a strategic change in its business model.
Many Bluusmart users have found themselves unable to ride from prominent places, including messages such as “no slots available” on the app, including parts of Delhi Airport and Gurgaon. This has caused confusion and disappointment among the passengers who have trusted the service for the airport and the Intercity Yatra.
The operational stop falls on high heel shoes of increasing financial difficulties, including high cash burning rates and ongoing gensol engineering problems-a company promoted by Blausamart co-founder Anmol Singh Jaggi. These financial strains have played an important role in Blousmart’s step to get out of their main ride–lingering operation.
Earlier this month, Blasmart had already reduced its services significantly. The company, once provided 25,000 to 30,000 daily ride, cut its operation in half before the latest suspension was effective. The situation has deteriorated with a recent regulatory action against Gensol Engineering.
Securities and Exchange Board of India (SEBI) recently issued an interim order against Gensol Engineering. The order alleged that Anmol Singh Jaggi and his family removed loans taken by Gensol Engineering to purchase electric vehicles, which used funds for unrelated purposes, including purchasing luxury apartments in Gurgaon.
Since Blasmart removes its axis from direct ride-lingering services, the integration of its EV fleet in Uber’s network seems to be a survioism strategy amidst the ongoing investigation and financial instability. After the infection is revealed, the entire limit of disruption of service in the coming weeks can be clear.
