Three points you will get to know in this article:
- BluSmart Mobility adopts tiered pricing based on time, ensuring transparent fares and industry alignment, distinguishing it from competitors.
- Securing $24 million in fresh equity, BluSmart aims to grow its electric vehicle fleet to 8,000.
- Despite a 222% surge in operational scale, BluSmart grapples with a 66% increase in losses, mirroring a competitive landscape alongside Uber India’s similar financial challenges.
BluSmart Mobility, with a keen focus on electric vehicles, has discreetly unveiled a fresh pricing model tailored to different times of the day. This innovative structure comprises two distinct tiers: ‘rush hours’ and ‘relaxed hours.’ As the names suggest, charges during ‘rush hours’ are set to be higher than those during ‘relaxed hours.’
In a communication sent to its users, a revelation highlighted by a handful of individuals on X, BluSmart has outlined that ‘rush hours’ for city rides are applicable during specific time slots—Morning (8:30 am to 10:30 am IST) and Evening (5:30 pm to 8:00 pm IST). Additionally, for airport rides, ‘rush hours’ apply during City to Airport (3:30 am to 6:30 am IST) and Airport to City (9:00 pm to 1:00 am IST).
This revamped pricing strategy not only adapts to varied timeframes but also ensures a seamless and cost-effective experience for users, aligning with BluSmart’s commitment to providing efficient and affordable electric mobility solutions.
Rationale for New Pricing Strategy
The recent notification indicates that as of January 8, 2024, BluSmart has implemented a revised pricing structure. Confirming these alterations, Anirudh Arun, COO and co-founder of BluSmart, stated, “In our ongoing commitment to transparent pricing, BluSmart has introduced a fixed rate system tailored to various times of the day for our valued customers. This strategic adjustment aligns us with industry standards. Our latest pricing approach guarantees that what customers view on the app is precisely what they pay, emphasizing fairness and reliability. BluSmart remains dedicated to our core values of zero ride denials, ensuring dependable and secure rides, and maintaining clear and consistent fare structures.”
BluSmart’s Positioning in the Market
It is noteworthy that BluSmart continues to set itself apart from industry giants like Ola Cabs and Uber by emphasizing its eco-friendly practices, commitment to transparency, and superior service to customers. The elimination of surge pricing further distinguishes BluSmart in the market.
During a previous interview, BluSmart’s co-founder, Anmol Jaggi, questioned the rationale behind a threefold increase in prices when faced with rainy road conditions.
In the backdrop of the Ola Cabs and Uber duopoly, both aggressively advancing their electric vehicle (EV) initiatives in 2023, BluSmart is actively seeking to broaden its footprint in the country. Currently operational in Delhi-NCR and Bengaluru, the company envisions expanding its EV fleet to approximately 8,000 vehicles across these regions by the coming year.
BluSmart’s Funding Success
In a recent development, the EV-focused startup successfully secured $24 million in a fresh equity round. Notably, the round witnessed enthusiastic participation, with existing investors, founders, and the leadership team contributing beyond the initially planned amount.
In May, the company successfully secured a funding of $42 million, with half of the investment coming from its own leadership team. To date, BluSmart has amassed a total funding of over $133 million, notably obtaining $85 million in its Series A round distributed across multiple installments.
Operational Growth and Financial Challenges
Although the company has not yet disclosed its financial results for the fiscal year 2023, its operational scale experienced an impressive 222% surge, reaching Rs 29 crore in FY22. Notably, the primary revenue sources for BluSmart in that fiscal year were its cab services and charging facilities. However, the firm faced a challenge as its losses grew by 66%, amounting to Rs 65.4 crore during the same period.
Meanwhile, Uber India achieved a noteworthy 54.46% boost in its revenue, surpassing Rs 2,600 crore in the fiscal year ending March 2023. However, it is important to note that the company also saw a 57% increase in losses during this period.
BluSmart Mobility recently introduced a new pricing model, distinguishing between ‘rush hours’ and ‘relaxed hours,’ to adapt to varied timeframes and provide cost-effective electric mobility solutions. This strategic move aligns with the company’s commitment to transparent pricing and reliability, setting it apart from industry leaders. Seeking to expand its electric vehicle (EV) fleet and broaden its footprint, BluSmart secured significant funding and witnessed substantial operational growth. Despite facing financial challenges, the company remains focused on its core values, indicating a proactive stance in the competitive EV market while emphasizing sustainability, transparency, and service excellence.
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