The sudden suspension of operations by electric cab aggregator BluSmart has left hundreds of its drivers and employees in a state of limbo, triggering protests and demands for compensation. The company, which once positioned itself as a sustainable and driver-friendly alternative to ride-hailing giants Ola and Uber, abruptly halted services on April 16, 2025, citing technical issues. However, drivers allege the shutdown was unannounced and have since been struggling with loss of income and lack of clarity about their future.
Drivers Left in the Lurch After Abrupt Suspension
BluSmart drivers were called to the company’s hubs on April 16 for what was described as a routine vehicle breakdown check. Instead, they were informed that the company was suspending services indefinitely. “We thought it was a minor issue, but then they told us the service was stopped. We were sent home without any information about when or if we would be called back,” said Rajesh (name changed), a BluSmart driver based in Gurugram.
The sudden halt has left many drivers, who relied on BluSmart’s fixed salary and incentives, scrambling to find alternative sources of income. Unlike traditional ride-hailing platforms where drivers own or lease their vehicles, BluSmart operated a full-stack model, owning and maintaining its fleet of electric vehicles and offering drivers a fixed monthly salary. This model attracted many drivers seeking stability in the gig economy.
Impact on Drivers and Employees
The shutdown has had a severe financial and emotional impact on drivers and employees. “I have missed my children’s school fees this month. My family depends on my income from BluSmart, and now I have no idea how to manage,” Rajesh said.
Many drivers have attempted to join other platforms like Ola and Uber, but with limited success. “Women drivers, in particular, are facing difficulties finding work elsewhere. Some companies refuse to recruit women drivers, which makes the situation even more difficult,” said Tajinder Singh, president of Parivahan Morcha Athavale, a drivers’ union leading the protests.
Besides drivers, hundreds of employees working at BluSmart’s charging hubs have also been affected by the suspension of services.
Protests at Jantar Mantar Demand Compensation and Government Intervention
On May 4, 2025, dozens of BluSmart drivers gathered at Jantar Mantar in New Delhi to protest the company’s sudden shutdown and demand compensation for lost wages. The protesters urged the government to intervene and ensure that drivers receive their dues and support to find alternative livelihoods.
“We want compensation for the drivers who have lost their income. The government must step in to protect the interests of these workers who have been left stranded,” Singh told reporters at the protest.
The protest highlighted the drivers’ frustration with the company’s lack of communication and the absence of any severance or support package.
BluSmart’s Business Model and Financial Troubles
BluSmart’s full-stack model, where the company owned its fleet of electric vehicles and employed drivers on a fixed salary, was touted as a more sustainable and driver-friendly approach compared to the asset-light models of Ola and Uber. The company promised drivers a fixed monthly income, incentives, and freedom from vehicle maintenance worries.
However, this capital-intensive model required significant funding to sustain operations and growth. BluSmart raised over $180 million in funding, including a $50 million Series B round announced in January 2025. Yet, only Rs 61 crore of the promised $50 million was received, raising questions about the company’s financial health.
Earlier in 2025, BluSmart had shut down its Dubai operations and faced delays in salary payments. The exit of key management personnel, including the CEO, Chief Business Officer, and CTO, further fueled concerns about the company’s stability.
Regulatory Issues Add to BluSmart’s Woes
Adding to BluSmart’s challenges, the Securities and Exchange Board of India (SEBI) issued an order against Gensol Engineering, BluSmart’s electric vehicle lessor and partner. SEBI found misuse of funds by the promoters of Gensol and barred them from accessing the securities market and holding key positions. This regulatory setback has cast a shadow over BluSmart’s operations and future prospects.
Drivers’ Legal Options and Calls for Policy Reform
Drivers are exploring legal avenues to claim unpaid dues and compensation. However, many fear that contractual clauses may protect the company from liability, leaving drivers with limited recourse.
“We are fighting for our rights. Companies like BluSmart often design contracts that shield them from responsibility, but we will not give up,” said Singh.
The crisis has also reignited calls for stronger labor protections for gig and platform workers. Drivers are demanding government policies that ensure job security, fair wages, and social security benefits for workers in the rapidly growing gig economy.
The Road Ahead for BluSmart and Its Drivers
The future of BluSmart remains uncertain. Industry insiders speculate that the company may attempt a turnaround with new management and restructuring, but rebuilding trust with drivers and investors will be a major challenge.
For drivers, the immediate priority is securing compensation and finding alternative livelihoods. Many remain hopeful that BluSmart will resume operations, but in the meantime, they continue to face financial hardship and uncertainty.
