BluSmart Cab Services Unavailable In Delhi NCR, Bengaluru, Mumbai

Troubled ride-hailing startup BluSmart seems to have suspended cab scheduling services in all the cities it operates in – Delhi NCR, Mumbai, and Bengaluru.

The startup’s app is showing a message that no slots are available and redirecting users back to the homepage while trying to schedule a cab from the app. 

However, the “Express Ride” option, which allows users to get cabs in 10 minutes seems to be working in Delhi NCR. 

Sources within the startup said that the app is currently facing a technical issue and it would be fixed soon. BluSmart declined to comment on Inc42’s queries on the development. 

It needs to be highlighted that scheduled cab services generated a majority of revenue for the BluSmart.

The latest development comes a day after SEBI barred BluSmart cofounders and Gensol promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities market.

The latest development comes a day after SEBI barred BluSmart cofounders and Gensol promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from the securities market for various violations, including misutilisation and diversion of funds.

“… the prima facie findings have shown mis-utilization and diversion of funds of the company in a fraudulent manner by its promoter directors, Anmol Singh Jaggi and Puneet Singh Jaggi, who are also the direct beneficiaries of the diverted funds,” the SEBI order said.

The interim order said that Gensol attempted to mislead SEBI, credit rating agencies (CRAs), lenders and investors by submitting forged conduct letters purportedly issued by its lenders. 

The markets regulator noted that the promoters of Gensol and their related parties/ relatives benefitted from the funds of Gensol through layered transactions. It needs to be highlighted that BluSmart is a related party of Gensol Engineering Ltd.

The trouble for Gensol began following a default by BluSmart on its non-convertible debentures. 

The ride-hailing company was incorporated as Gensol Mobility Private Limited in October 2018, before its name was changed a year later to Blu-Smart Mobility Private Limited. BluSmart’s three subsidiaries also started life with the Gensol branding before their names were also changed. 

Last week, it was reported that the startup has delayed salary payments for the month of March amid the financial crisis.

Meanwhile, a report by ET, earlier this week, said that BluSmart may exit its core ride-hailing business and transition to operating as a fleet partner of its rival Uber.