Uber in talks to acquire BluSmart to boost India’s EV ride-hailing market presence: Reports

Uber Technologies, the US-based ride-hailing firm, is reportedly in initial discussions to acquire BluSmart Mobility, an electric cab service operating in India. According to a report by the Economic Times, the potential deal could help Uber expand its footprint in the country’s fast-growing electric vehicle (EV) ride-hailing segment.

The acquisition could help Uber strengthen its position in India, where it faces increasing competition from players like Rapido, which has rapidly diversified into three- and four-wheeler operations. Uber CEO Dara Khosrowshahi acknowledged the intensifying competition in the Indian market last year, emphasising the need for the company to stay agile.

BluSmart, headquartered in Gurugram, currently runs an all-electric fleet of over 5,000 vehicles in Delhi-NCR, Mumbai, and Bengaluru, along with an international presence in Dubai. Its vehicles, mainly from Tata Motors and MG Motor, are owned by Gensol Engineering and leased to BluSmart. The company also operates EV charging infrastructure in NCR and Bengaluru.

The reported discussions come at a time when BluSmart's parent company, Gensol Engineering, is facing financial strain. Gensol recently announced plans to raise ₹600 crore to tackle liquidity issues, including a proposed sale of vehicles to Chennai-based Refex Industries. Additionally, the company’s debt facilities have been downgraded to "default" status by credit rating agencies ICRA and CARE, further highlighting its financial challenges.