BluSmart users stranded as EV cab service shuts down; everything to know and how to get your BluWallet refund

If you're a regular on the business and finance sections of social media, there’s a good chance you’ve come across posts about BluSmart. Once hailed as a clean, electric alternative to ride-hailing giants like Ola and Uber, BluSmart has now found itself at the centre of a major financial crisis. Though the app is still technically available for download, users in Delhi and Bengaluru are finding that it no longer functions as expected since rides cannot be booked, the wallet feature is inactive, and customer support is virtually unreachable.

So what exactly is happening, and what does it mean for everyday users, especially those in metro cities, where BluSmart has built a loyal user base? Here’s a breakdown of the situation so far.

Suspension of services

Is BluSmart officially shutting down? Well, the company has not made any formal announcement. However, reports suggest that BluSmart may be moving away from ride-hailing altogether and pivoting into a fleet partnership model, with early signs pointing to a collaboration with Uber. According to media sources, between 700 and 800 electric vehicles are set to be transferred from BluSmart’s fleet to Uber’s platform. No clear timeline has been shared, but the change appears to mark a major shift in the company’s business direction.

This transition comes on the heels of several high-profile leadership exits. In the last month alone, BluSmart’s CEO Anirudh Arun, Chief Business Officer Tushar Garg, and Chief Technology Officer Rishabh Sood have all stepped down. These departures have been widely interpreted as signals of internal turmoil and financial instability, further raising concerns about the company's long-term viability.

Why are they suspending services?

The immediate reason behind the suspension of services lies in an ongoing investigation by the Securities and Exchange Board of India (SEBI) into Gensol Engineering, the company that served as BluSmart’s key financial backer and EV leasing partner. Gensol was founded by Anmol and Puneet Jaggi, who also co-founded BluSmart. SEBI’s probe alleges that Gensol misused over ₹200 crore in government-backed EV loans. These funds were meant to finance the procurement of 6,400 electric vehicles however, only 4,704 vehicles were delivered, while the rest of the money was allegedly spent on luxury purchases and unrelated expenses.

Further scrutiny revealed that Anmol Singh Jaggi had allegedly redirected ₹25.76 crore from Gensol to personal accounts and affiliated entities. One of the more surprising links uncovered was a transfer made to Third Unicorn, a startup founded by Ashneer Grover. Following the investigation, SEBI barred Gensol and related entities from participating in the securities market and disqualified both Jaggi brothers from holding executive or managerial positions in publicly listed companies. This action has created a ripple effect across BluSmart’s internal leadership and operations, leading to a near-complete breakdown of its core services.

How does this affect users?

While the overall situation looks tense for the company, for regular BluSmart users, one of the most immediate concerns is the money left in their BluWallets. Unlike Ola or Uber, BluSmart operated on a prepaid model wherein users had to load money into the app before booking a ride; this meant keeping a significant balance in their Blu Wallets. Now that services have stopped without prior notice, many customers are left unable to access or use their wallet funds. Adding to the frustration is the lack of a clear refund process or active support system.

The only available workaround appears to be within the app’s Help section. Users can navigate to the Blu Wallet section and view the available FAQS. However, this section does not offer a direct refund option. To contact customer support, users must respond “no” to the question, “Does this resolve your issue?” only then will you be directed to a support window, where they can request a wallet refund. Unfortunately, many users have reported delays and a lack of communication from the BluSmart team, making the process far from user-friendly.

Netizens react to the suspension of services

The public reaction to BluSmart’s collapse has been deeply emotional, particularly among long-time users. One user wrote, “BluSmart cabs can't be booked anymore... My 630PM cab got cancelled at 6 PM - not possible to book a replacement on the app. This is a product & company which I've used extensively (750+ rides) in the past 2 years. Shame to see it go down this way. It was one of the few reliable options.” Another user shared how the platform had become a lifeline for their elderly parents: “My elderly parents in Delhi have an unwavering faith in BluSmart. They refuse to keep a car and driver, saying “BluSmart hai na.” Whenever they have to go somewhere and I offer to arrange a premium car service I trust, they respond, “BluSmart hai na. Rental kar lenge.” I don't know exactly what went wrong, but I know they'll be heartbroken when I tell them “Ab BluSmart nahi hai.”” Others expressed broader concerns about India’s transport ecosystem, with one comment reading, “Vistara gone. Jet Airways gone. BluSmart gone. The good ones keep shutting down overnight. We’re left with Air India and Uber. It’s disappointing.”

In the end, BluSmart’s situation underscores how fragile even promising, well-loved services can be. For now, if you’re a user, the best course of action is to request your wallet refund and wait to see whether BluSmart’s name resurfaces in a different form.