Finshots Daily BluSmart is knee-deep in trouble
Apr 2, 2025
Dive into the turbulent waters surrounding BluSmart, a once-prominent electric vehicle ride-hailing service now grappling with severe financial woes. Discover how heavy debts and governance issues have tangled the company in a complex web, leading to a dramatic fall from grace. With major executive shifts and waning investor faith, the contrast between its initial triumphs and current crises paints a compelling picture of the challenges of over-diversification in the business world.
AI Snips
Chapters
Transcript
Episode notes
BluSmart's Troubles
- BluSmart, an EV ride-hailing company, faced trouble after its top executives resigned.
- Its close ties with Gensol, an EV leasing company, raised governance concerns.
Business Model Risk
- Unlike Ola and Uber, BluSmart leased EVs, creating financial vulnerability.
- This exposed them to risks like rising leasing costs and partners pulling back.
Intertwined Companies
- Gensol, founded by the same person as BluSmart, leased many EVs to BluSmart using government-backed loans.
- This intertwined relationship raised questions about transparency and governance.