How BluSmart is working for Sustainable Mobility in UAE
Co-founder of BluSmart, one of India’s leading ride-hailing startups, Anmol Singh Jaggi, has laid down an ambitious goal for the decarbonization of mobility at scale. Moreover, BluSmart will start its operations in Dubai in June, and the company is looking at expansion across UAE with an all-electric taxi fleet. This would help the company to attract environmentally-conscious travelers and give a tough fight to established market rivals like Careem.
“We will have to pay for these sins sooner or later,” says Jaggi. BluSmart has a vision of a cleaner, more sustainable future, and focusing on decarbonization will ensure that.
Decarbonization of the UAE shows that it could set a very powerful example to other nations, despite being regarded as a country rich in oil. Jaggi has commented. “If the UAE can do it, all other countries will find no problem whatever in adopting electric mobility,” he said.
BluSmart will enter Abu Dhabi immediately and, within a year, make a strategic push in Saudi Arabia. This showcases how serious the company is about making a difference in the region’s electric mobility scene.
BluSmart Offers Premium Electric Mobility in Dubai
The electric car top-of-the-line mobility company, BluSmart, is currently creating ripples in Dubai with its zero-emission and luxurious service. However, they offer a chance for a zero-emission ride experience in Audi e-tron rides, where comfort and driving that does not harm the environment are the hallmark features.
BluSmart takes pride in its assurance of dependability: no cancellations by the driver, and no surge pricing with an increase in traffic or weather conditions. The basic fare for any city ride would be Dh25 ($6.8), and anyone who would like to rent a car for a minimum of two hours can do so for Dh299.
Currently operating with a fleet of 30 Audi e-trons and engaging 60 distinctive drivers, BluSmart has an order placed to scale up an additional 70 electric vehicles, which should be in place by this October. Before this year’s end, the BluSmart fleet is expected to comprise 150 EVs and 225 distinctive drivers.
Fueled by the demographic and tourism attributes of the UAE, BluSmart eyes a promising green transportation market. Its marketplace sales projections are driven by the demographic and tourism attributes of the UAE; by 2025, the company expects 1,200 EVs, 1,800 drivers, and the creation of thousands of jobs across the country.
The target for BluSmart would be around 10 to 15 percent of market share with UAE’s fleet expected to rise from 25,000 to 35,000 vehicles within the next three years. It simply shows how dramatic the company is into believing that they can cope with the ever-increasing demand for high-end luxury transportation means in Dubai.
BluSmart Targets UAE’s Growing EV Market
The ambitious push that the UAE is making into renewable energy is likely to dramatically transform its transport sector. A boon, therefore, to ride-hailing companies, including one of the newest entrants.
BluSmart differentiates itself through an aggressive car electrification agenda. Its fleet and drivers are directly managed to provide reliable service, ensure cleanliness of the vehicle, and assure fulfillment of all bookings.
That is a singular approach, says Mr. Jaggi, which would help the company attract riders away from rivals—not only in India but also in new markets like Saudi Arabia. Indeed, all these markets often suffer because of customers’ dissatisfaction with an unclean car, unreliable services, and inconsistent pricing.
Green transportation is an underpinning element of the UAE’s goals concerning sustainability. The Net Zero 2050 Strategic Initiative, a mammoth investment of Dh600 billion in clean and renewable energy over three decades, was announced by the country in 2021. The UAE is the first of the Gulf states to have set a target for net-zero emissions by 2050.
Electric mobility is one of the major ways to make the cities smart in the UAE. Abu Dhabi has moved up significantly to take the 10th place on the Smart City Index 2024, prepared by the International Institute for Management Development. Dubai has also moved up in the rankings to the 12th position from 17th.
BluSmart’s Electric Journey: From Pandemic to Growth
Backed by BP Ventures and responsAbility Investments AG, BluSmart began operations in Delhi in December 2019. The business was derailed by the pandemic within three months, compelling it to shut down for 18 months starting March 2020. BluSmart began operations in Bengaluru once things eased a bit with COVID-19.
Today, BluSmart India has an EV fleet of 8,000, over 10,000 drivers, and 4.2 million downloads of the app. It has saved close to 40,000 tonnes in carbon emissions.
Mr. Jaggi is a serial entrepreneur and a petroleum engineer. He co-founded BluSmart after his earlier venture, GenSol Engineering, was engaged in the business of manufacturing solar energy. For Jaggi, entering the electric mobility sector was easy because he was already dealing in the realm of renewable energy.
“I was looking for a new challenge in clean and green. Electric mobility seemed like the most promising area to get into. In 2019, the adoption of clean mobility was still at a nascent stage, even smaller than what it is today,” Jaggi explained.
He added, “EVs make for commercial sense and for environmental sense. As a personal passion of being in the clean energy sector, it gave me the next fillip of what I wanted to do“
BluSmart’s Vision for a Greener Future
Mr. Jaggi exudes confidence when he has to express his views regarding the future of electric mobility. Indeed, he expects further development in electric battery technology, which will double its capacity and halve its price over the next 12 to 18 months. He added that such technological progress would provide a huge tailwind to the entire sector, forcing central governments, banks, and companies to invest in electric vehicles.
Jadgi sees an opportunity for BluSmart to capitalize on the early-mover advantage. He wants to create a financially viable model of electric mobility to attract investment from banks and governments looking for proven credentials.
While range anxiety and limited charging infrastructure are challenges, says Jaggi, they are opportunities for entrepreneurs. By 2040, app-based mobility services—virtually nonexistent a decade ago—are likely to be a $1 trillion market, says a report by IHS Markit. This will disrupt traditional car makers and energy companies. In place of these firms, there will be space for new entrants like BluSmart.
BluSmart has raised $136 million in equity so far and is targeting another $200 million over the next three years. Last month, it closed a pre-series B funding round of $24 million from responsAbility Investments and existing investors, which will be used to augment its fleet, charging infrastructure, and to fund operational expenses.
BluSmart Targets Growth and Profitability
BluSmart is now into its series B funding of $70 million within the next 12 months, as per the blueprints swathed across the thoughts of Mr. Jaggi, the CEO.
BluSmart’s revenues for this financial year are pegged at about $90 million, while their loss would be around $30 million. “We believe we will break even by the end of 2025, and in 2026, the profit could be $200 million to $250 million,” the company said. These projections are based on the fact that both the car and fossil fuel industries are getting disrupted and investments in green transportation are surging.
BluSmart is also looking to foray into new markets like the UAE and Saudi Arabia. “Dubai itself is a huge market and we would definitely look at expanding to Abu Dhabi as well. The proximity between the two cities, whether for travel or even on leisure or government business, is a great synergy,” said Mr. Jaggi.