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10,000 drivers stranded after BluSmart halts operations, seek dues
Inshorts
·
3m ago
Medial
Over 10,000 drivers are reportedly left without income or clarity about their employment status after ride-hailing startup BluSmart suspended its operations. Many drivers are waiting for their pending payments and weekly incentives, the Gig Workers Association (GigWA) said. BluSmart halted operations amid an ongoing SEBI probe into its key EV partner Gensol Engineering.
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BluSmart drivers protest over unpaid dues, demand jobs after shutdown
Economic Times
·
3m ago
Medial
Hundreds of BluSmart drivers in Delhi-NCR are protesting due to unpaid dues and the abrupt halt of the EV ride-hailing platform's operations, affecting over 10,000 drivers across multiple cities. The protest follows allegations of fund siphoning against BluSmart's cofounders by the Securities and Exchange Board of India. Drivers have reported a lack of formal communication from the company and delays in payments, causing significant financial stress, especially for women and single mothers.
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Ride cancellation and surge pricing are top concerns of Uber, Ola users in Bengaluru: Survey
YourStory
·
11m ago
Medial
A survey conducted by Local Circles revealed that app-based taxi services in Bengaluru, such as Uber, Ola, and BluSmart, have faced issues in the past year. The survey garnered over 10,000 responses, with 85% of Uber users reporting problems like ride cancellations, surge pricing, and drivers talking on mobile phones while driving. Similarly, 78% of Ola users complained about surge pricing and expensive rides. BluSmart users appreciated the absence of ride cancellations and surge pricing but had complaints about drivers arriving too early and repeated calls to customers.
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BluSmart drivers face uncertainty amid company troubles, founder issues
Entrackr
·
3m ago
Medial
BluSmart suspended its operations in April in Mumbai, Delhi-NCR, and Bengaluru, asking its 10,000 driver-partners to return their vehicles. The move has left several drivers scrambling to find new sources of income. Rajesh [name changed], a 35-year-old man in Gurugram, secured a driving job with a heavily VC-funded electric vehicle cab hailing company which once aimed to take on the duopoly of Ola Cabs and Uber in India. An average income of Rs 20,000 to Rs 25,000 per month, Rajesh admits, was not much for his family but managed to pay bills. Though, Rajesh, who also is a father of two young children, put in 10 hours to 12 hours daily - to reach the estimated monthly income. With his company now pausing the services, Rajesh has no source of earning, and does not know how he will pay his kids’ education fees. "... Now, I don’t know how I’ll manage. I missed my kids' school fees this month. My family depends on me, and I’ve never felt so helpless,” a visibly stressed Rajesh told Entrackr. One of the things that is agonising Rajesh the most is the deceptive way his employer pushed them out. “On Wednesday (April 16th), we [drivers] received a message saying the car needed to be submitted to the hub for a breakdown. We thought it was just a minor technical issue. When we got there, they told us it was a failure and we’d be informed later. But there was no word from the company after that. We just had to go home. We were left in complete shock," says Rajesh as his voice strains, reliving the fateful moment. Rajesh says he was among the first lot of employees, when the company had just 50 cars. Like many others, he too bought the company’s promise of stability. “Now, it feels like we’ve been left out to dry,” he said. “I’m considering working with Uber or Ola… I’m looking for something else, maybe a different field altogether. But BluSmart was my livelihood, and I’d go back in a heartbeat if they reopened. It was my only source of income,” he added. Rajesh’s story resonates with another thousands of drivers who are now scrambling to find new sources of income after BluSmart’s sudden suspension of its services. Entrackr has reached out to BluSmart seeking responses on how they plan to compensate the affected drivers. In case they respond, we will incorporate their inputs. Staging the protest On May 4, a group of BluSmart drivers raised their grievances at Jantar Mantar, a historic site for protests. They pressed for demands for alternative income avenues as well as called for crucial policy reforms to prevent similar abrupt dismissals. Additionally, they also sought a government intervention. Tajinder Singh, president of Parivahan Morcha Athavale and also among those spearheading the protest, told Entrackr that women drivers of BluSmart were among those bearing the brunt the most as other taxi companies refused to recruit them. He further said that some drivers were working on a per day basis as and when required but asserted that this was not a long-term solution. “We are demanding compensation for affected BluSmart drivers. We have also sought government intervention so that the drivers can continue to earn their livelihood,” Singh said. Singh also claimed that hundreds of BluSmart employees working at charging hubs were affected by the company’s sudden suspension of its services. A business model that promised to be different than rivals Even as ‘sustainability’ remained the headline grabber, BluSmart also deployed a rather different business model compared to rivals Ola Cabs and Uber. The company used a full-stack B2C model wherein they owned and managed the vehicles whereas Ola and Uber work with independent drivers. The model allowed BluSmart to have a better control on the quality of cars, maintenance, and subsequently better customer service. For drivers, the company offered a fixed salary along with incentives. An assured income was a big factor why a lot of drivers showed interest in joining BluSmart. Ola and Uber, on the other hand, operated on a familiar commission-based system, also common with several gig working-reliant service providers. Singh also highlighted this stark difference between BluSmart and its rivals. He said that the job of driver was to pick and drop the passenger and earn a regular income (per day payout and incentives). They needed to work 10 hours to 12 hours a day. Other things like maintenance and documentation was taken care of by the company, giving drivers a more relaxed environment to operate. Blusmart has raised over $180 million to date, including its $50 million series B round in January this year. Though, it received only Rs 61 crore out of $50 million. That said, a heavily-funded BluSmart juggernaut appeared unstoppable, until it did. Earlier this year, reports emerged that BluSmart delayed salary payments to cash crunch. It had also shut down operations in Dubai and also saw an exodus of top management employees, including CEO, CBO, and CTO. A month later, SEBI published findings of its probe into Gensol Engineering, BluSmart’s partner and EV lessor. The SEBI order highlighted misuse of funds, and also barred promoters Anmol and Puneet Singh Jaggi from accessing the securities market and holding key positions in Gensol Engineering. What next for BluSmart drivers BluSmart drivers facing joblessness due to the shutdown can go for legal remedy and urgently demand clearance of any unpaid dues and better severance compensation, if not given already. The legal course, which may take a relatively long time, may also help them investigate if BluSmart violated the contract by sudden halting of their services and returning vehicles. Moreover, they can also seek intervention from regulatory boards. Singh, however, did not appear enthusiastic about taking the legal course. “Companies like these make such contracts that they keep them protected in such incidents and don’t have to own any responsibility towards people working so hard for them,” he said [loosely translated from Hindi]. As far as the future of the company goes, it’s hard to predict considering the massive VC money riding on the company. Despite the major dent in public image and also several legal troubles, it’s likely that the company may stay afloat with a rather new management and new board - a few known steps troubled companies often take to course correct. It’s worth noting that quality of drivers and cabs were the top highlight of the platform, and if it resumes, it should continue with that. With the ongoing protests and lack of communication between drivers and management, it seems unlikely that the company will enjoy the same level of trust from its network drivers.
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NCLT Ahmedabad bench admits insolvency petitions against Blusmart Mobility - The Economic Times
Economic Times
·
10d ago
Medial
The National Company Law Tribunal's Ahmedabad bench admitted an insolvency petition against BluSmart Mobility, a ride-hailing startup, due to unpaid dues of Rs 1.28 crore. The tribunal appointed a resolution professional to manage the bankruptcy process and oversee BluSmart's assets. BluSmart, founded by the Jaggi brothers of Gensol Engineering, had halted operations and faced financial difficulties. Catalyst Trusteeship, as a financial creditor, sought legal action for the defaulted payments.
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BluSmart suspends operations as SEBI probes co-founder over fund diversion
VCCircle
·
3m ago
Medial
BluSmart, an Indian electric cab service competing with Uber, has suspended operations following a probe by SEBI into co-founder Anmol Jaggi for fund diversion. The investigation revealed misuse of funds intended for electric vehicle procurement, allegedly spent on a luxury apartment. BluSmart, which operated over 8,000 taxis with charging hubs in major Indian cities, risks affecting thousands of drivers' livelihoods. The company promises refunds within 90 days if services don’t resume.
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Eversource Capital offers to buy BluSmart for ₹850 crore
Inshorts
·
3m ago
Medial
Investment firm Eversource Capital has made a non-binding offer to buy ride-hailing startup BluSmart for around ₹850 crore, CNBC-TV18 reported. Under the potential deal, BluSmart founders Anmol and Puneet Singh Jaggi are likely to be asked to step down. BluSmart has suspended operations after SEBI launched a probe into the Jaggi brothers and their firm Gensol Engineering.
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Indian teachers stranded as Saudi-based edtech Noon fails to honour promise to clear dues after multiple extensions
Money Control
·
2y ago
Medial
Saudi-based edtech company Noon has allegedly failed to fulfill its commitment to pay pending dues to Indian teachers, leaving them stranded. Despite multiple extensions, the company has not honored its promise, causing financial distress to the affected teachers. This situation highlights the challenges faced by Indian teachers working for overseas edtech platforms.
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Karnataka HC puts the brakes on bike taxis in the state
YourStory
·
4m ago
Medial
The Karnataka High Court has ordered bike taxi platforms like Rapido, Ola, and Uber to suspend operations in the state within six weeks, raising legal challenges for these companies. The decision came after rejecting petitions from these firms, amid ongoing disputes with autorickshaw unions. Key issues include the use of white number plate motorcycles as commercial vehicles. Rapido expressed concern for its drivers and plans to seek legal remedies once the court's detailed order is released.
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Sanjeev Bikhchandani on BluSmart: ‘Drivers are worst hit’
Economic Times
·
3m ago
Medial
BluSmart Cabs, an electric mobility startup, shut down operations, raising concerns about corporate governance and the vulnerability of gig economy workers. Sanjeev Bikhchandani, founder of Info Edge, expressed disappointment and highlighted governance issues following regulatory actions by India's Securities and Exchange Board. The orchestration of financial irregularities led to the suspension of operations across several cities, affecting cab drivers' incomes. Co-founders Anmol and Puneet Jaggi resigned amid scrutiny over misused loans and improper acquisition of electric vehicles.
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'Passion doesn't pay bills,' says ex-BYJU'S employee on unpaid salary; CEO replies
Inshorts
·
5m ago
Medial
A former BYJU'S employee tagged CEO Byju Raveendran on social media and wrote, "Passion doesn't pay our bills...We've been left stranded without salaries for 3 months. Our PF remains unpaid." He added, "Words inspire, but actions matter." Byju Raveendran responded, "Bills will be paid, comeback will be made, dues will be cleared. Not immediately, but eventually."
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