BluSmart is knee-deep in trouble

Financial Strain and Leasing Risks

BlueSmart's business model heavily relies on leasing electric vehicles from third-party financiers, exposing it to significant financial risks. Unlike competitors like Ola and Uber, which utilize driver-owned vehicles, BlueSmart's dependence on leasing means that any rise in costs or withdrawal of support from leasing partners could endanger its entire operations. This vulnerability became evident when its primary leasing partner, Gensol Engineering, faced severe financial difficulties, leading to a downgrade in credit ratings and necessitating the sale of a substantial portion of its fleet. Consequently, BlueSmart found itself at the mercy of Reefex Green Mobility, which not only acquired a significant part of its fleet but also hinted at potential competition by launching its own ride-hailing service.