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Davinder Sandhu suggests a phased transition — starting with government ownership via a special purpose vehicle and moving toward cooperative control over 5-7 years.
BluSmart’s sudden suspension of operations in Delhi-NCR, Mumbai, and Bengaluru — amid financial misconduct allegations against its founders — has left over 10,000 drivers jobless.
The government should act swiftly to acquire BluSmart to safeguard clear mobility jobs and infrastructure and integrate it into the newly launched Sahkar Taxi cooperative platform, writes Davinder Sandhu, co-founder and board chair at Primus Partners, in an opinion piece for The Indian Express.
BluSmart’s sudden suspension of operations in Delhi-NCR, Mumbai, and Bengaluru — amid financial misconduct allegations against its founders — has left over 10,000 drivers jobless and rattled public trust in electric mobility ventures. But, Sandhu argues the collapse shouldn’t spell the end for its workforce or assets.
Launched in 2019, BluSmart earned praise as India’s first all-electric ride-hailing platform, known for zero-cancellation policies, fixed fares, and reliability — especially among women, seniors, and professionals. Many of its drivers had moved from traditional aggregators seeking a fairer, greener model, but lacking vehicle ownership, they now have few alternatives.
Sandhu proposes that BluSmart’s fleet, charging infrastructure, and technology be absorbed into the Sahkar Taxi scheme, unveiled by Union Minister Amit Shah in early 2025. The government-backed cooperative aims to ensure driver ownership, better incomes, and welfare benefits — offering an ethical alternative to profit-driven aggregators.
With support from the Ministry of Cooperation and the National Cooperative Development Corporation (NCDC), Phase I of Sahkar Taxi plans to onboard 20,000 driver-owners. Acquiring BluSmart would accelerate its rollout in major metros.
Sandhu suggests a phased transition — starting with government ownership via a special purpose vehicle (SPV) and moving toward cooperative control over five to seven years. He points to global successes like Spain’s Mondragon and Italy’s Emilia-Romagna as proof such models can thrive, even during crises.
“BluSmart’s downfall is a cautionary tale of unchecked growth,” he writes, “but it also presents a unique chance to back ethical, sustainable innovation. India must not let one company’s failure derail its green urban mobility vision”.
