BluSmart is a four-year-old electric vehicle (EV) ride-hailing company that is challenging the assumptions of industry analysts by successfully operating in Delhi and Bengaluru, India, where two established giants, Ola and Uber, already exist.
The Emergence of a Concept
Anmol Jaggi, Co-founder of BluSmart, and his partner identified gaps in the existing ride-hailing business models, which resulted in high interest rates, issues with car maintenance and cleanliness, and rising fuel costs. These factors were seen as opportunities to build a profitable EV ride-hailing business in India.
Algorithmic Complexities for an EV Fleet
To better manage its 70 EV cars on the Uber platform, BluSmart created its own app. Their algorithm for an EV fleet was more intricate than a regular fleet, which had to be considered multiple factors such as distance of the ride, car battery range, nearest charging station and station availability.
Lower Costs, Higher Ratings
BluSmart leases its EVs at an institutional level, which helps keep interest rates low, and lower fuel costs result in a lower cash burn. The company charges at par with the competition while maintaining a 4.9-star rating, which is seen as its competitive advantage.
Customer Experience is Key
BluSmart’s charging downtime is used to clean and maintain its cars, and a stringent selection process is followed for its driver-partners. The company does not have surge pricing and focuses on delivering excellent customer experience, which allows it to charge a premium and reduce marketing budgets.
BluSmart is expected to close its next round of funding, which is estimated to be between $200-250 million, and double its existing fleet in Delhi to 6,000 cars, making it the largest fleet of EV vehicles in the world. The company’s revenue is projected to reach Rs 500 crore by April 2024, with its annual revenue doubling every quarter.
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BluSmart’s success is attributed to its founder’s clarity of vision and grounding in the core tenets of business, as well as its focus on delivering an excellent customer experience. The company is poised for continued growth and expansion in the future.