BluSmart’s sudden service shutdown in two of India’s largest metro areas has exposed the fragility of India’s EV ride-hailing ecosystem. Known for its punctuality, zero-emission vehicles, and salaried drivers, BluSmart had carved a niche for itself. Now, with cars grounded and riders left hanging, India’s aspirations for sustainable urban mobility face a significant roadblock. Experts warn that unless there’s stronger policy support and financial oversight, other clean mobility ventures could meet a similar fate.
Thousands of BluSmart drivers were caught off guard as the company abruptly ceased operations in NCR and Bengaluru. The EV-based cab company, which operated with a fixed salary model for its drivers, had become a beacon for stability in the gig economy. Now, those drivers are left with no job security or clarity, and commuters are reverting to unreliable services. The collapse shows how vulnerable the entire workforce is when startups falter without warning.
BluSmart, India’s pioneering all-electric ride-hailing service, has abruptly suspended operations in Bengaluru and NCR, citing “internal operational challenges.” This unexpected move has left thousands of drivers without work and commuters scrambling for alternative transportation options. The suspension raises questions about the sustainability and governance of startups in India’s rapidly evolving electric vehicle (EV) sector.
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