BluSmart Drivers Face Uncertainty Amid Service Suspension

BluSmart drivers are experiencing distress as their services have been abruptly halted. Rajesh, a 35-year-old driver from Gurugram, had taken up a position at a well-funded electric vehicle cab company that aimed to rival the market leaders, Ola Cabs and Uber. Earning an average monthly income of Rs 20,000 to Rs 25,000 was challenging for Rajesh and his family, especially since he dedicated between 10 to 12 hours daily to achieve this income.

With the company’s recent service suspension, Rajesh is now left without a source of income and is uncertain about meeting his children’s educational expenses. He expressed his feelings of helplessness as he stated, “I missed my kids’ school fees this month. My family depends on me.” Rajesh is particularly troubled by the deceptive method of his employer’s exit.

“On Wednesday (April 16th), we received a message instructing us to take our cars to the hub for a breakdown,” he recounted. “We believed it was just a minor issue. However, upon arrival, we learned that it was a failure and were told we would be informed later. We left in shock as no further communications came from the company.”

Having started with the company when it operated only 50 vehicles, Rajesh was drawn in by the promise of stability. “It now feels like we’ve been abandoned,” he conveyed.

Rajesh is now contemplating options with Uber or Ola and is exploring alternative fields, although his primary source of income was BluSmart. He stated that he would gladly return if the company resumed operations.

Protests Emerge from Affected Drivers

Many BluSmart drivers, like Rajesh, are now frantically searching for other employment following the service suspension. Startup Superb has contacted BluSmart for comments regarding compensation for affected drivers and will update accordingly upon receiving a response.

On May 4, several former BluSmart drivers voiced their concerns at Jantar Mantar, a notable protest location, advocating for alternative income options and calling for essential policy reforms to prevent sudden dismissals. They also requested government intervention.

Tajinder Singh, president of Parivahan Morcha Athavale, highlighted that female drivers were particularly impacted, as rival taxi services were unwilling to hire them. He pointed out that some drivers were working sporadically but insisted that this was not a sustainable solution.

Calls for Compensation and Assistance

Singh emphasized the need for compensation for the affected BluSmart drivers and government assistance to help them sustain their livelihoods. He mentioned that many employees at charging hubs were also impacted by the company’s sudden service suspension.

Innovative Business Model Under Threat

BluSmart’s innovative business model set it apart from competitors like Ola Cabs and Uber. Maintaining a full-stack B2C approach allowed the company to manage vehicle ownership and operations directly rather than relying on independent drivers. This model aimed to enhance vehicle quality, maintenance, and customer service.

For drivers, BluSmart offered guaranteed salaries and incentives, a significant draw compared to Ola and Uber’s commission-based pay. Singh described the company’s approach as beneficial since it allowed drivers to focus on transporting customers without the added stress of vehicle maintenance.

Despite raising over $180 million, including a $50 million series B round earlier this year, BluSmart faced challenges. Reports indicated salary delays caused by financial troubles, and the company shuttered operations in Dubai while experiencing significant management turnover.

Furthermore, recent findings from SEBI’s investigation into Gensol Engineering, BluSmart’s partner, pointed to inappropriate fund usage, leading to severe restrictions on the company’s promoters.

Options for BluSmart Drivers Moving Forward

BluSmart drivers facing job loss have the option to pursue legal avenues for unpaid earnings and better severance packages. Such a legal route could take time, perhaps allowing for investigations into contractual violations linked to the sudden service cessation.

Despite this, Singh expressed doubts about the effectiveness of legal actions against companies that structure contracts to shield themselves from accountability. The future of BluSmart remains uncertain, especially in light of its substantial venture capital backing. Even with public relations challenges and legal problems, the company may persist with revamped leadership.

Quality has been a distinguishing feature of BluSmart, and if operations restart, maintaining this standard will be crucial. Ongoing protests and a communication breakdown between drivers and management may hinder the restoration of trust among its driver network.