BluSmart, once a promising name in India’s electric ride-hailing sector, has left over 10,000 drivers stranded following its sudden and unannounced suspension of operations.
The abrupt shutdown has not only disrupted the livelihoods of its driver-partners but has also raised questions about corporate governance and accountability in the startup ecosystem.
The Sudden Shutdown of BluSmart: Allegations and Investigations
On April 16, 2025, BluSmart halted its services without prior notice, leaving its drivers and customers in shock.
The company cited “server issues” in a vague voice note sent to drivers via WhatsApp, instructing them not to report to their hubs until further notice.
Since then, the hubs have remained locked, and the company has been unresponsive. This lack of communication has left drivers in a state of confusion and despair.
The shutdown comes amid serious allegations against BluSmart’s co-founder, Anmol Jaggi.
The Securities and Exchange Board of India (SEBI) has accused Jaggi of misusing funds intended for electric vehicle procurement.
SEBI has launched a forensic investigation into Gensol, a company linked to BluSmart, to probe allegations of fund diversion and document falsification.
These allegations have further tarnished the company’s reputation and raised concerns about governance in the startup ecosystem.
Impact on Drivers
The shutdown has had a devastating impact on BluSmart’s driver-partners, many of whom relied on the platform for their primary income.
Drivers earned between ₹25 to ₹40 per hour, with guaranteed minimum daily earnings of ₹400.
Monthly earnings often ranged from ₹12,000 to ₹50,000, bolstered by incentives as high as ₹8,000 per week for top performers.
These earnings were a lifeline for many, enabling them to pay off loans, purchase assets, and achieve financial stability.
However, the sudden cessation of operations has left drivers jobless and struggling to find alternative employment.
With over 10,000 former BluSmart drivers now competing for jobs, opportunities are scarce, and some employers are reportedly demanding commissions of ₹20,000 to ₹30,000 for placements.
Adding to their woes, drivers are being charged penalties for pre-booked work slots despite the shutdown.
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