“Decarbonising mobility at scale” is how Anmol Singh Jaggi, the co-founder of Indian ride-hailing start-up BluSmart, sums up the company's mission.
BluSmart, which started operations in Dubai in June, is planning to expand its operations in the UAE, betting on an all-electric taxi fleet to attract environmentally-conscious travellers and challenge its market rivals including the Uber-owned Careem.
“Everyone understands that the carbon emissions that we are doing, we will have to pay for all these sins sooner or later. The sooner we can solve the problem of lower carbon reduction, the better,” says Mr Jaggi, who is also the chief executive of BluSmart.
“Many people asked me 'why did you go to the UAE when it's such an oil-rich nation?' But my whole idea is that if an oil-rich nation can start to decarbonise then it is much, much easier for any other nation in the world to go and decarbonise.”
BluSmart aim is first to enter the Abu Dhabi market and then make a push for Saudi Arabia within the next 12 months, Mr Jaggi tells The National.
The company is currently offering its Dubai customers rides in the Audi e-tron luxury electric cars, with a promise of zero-emissions, no driver cancellations and “reliable” fares that do not fluctuate with variables like peak traffic or poor weather.
City rides start with a base fare of Dh25 ($6.8), while the option to rent a car for a minimum of two hours starts at Dh299.
Boasting a fleet of 30 Audi e-trons and a workforce of 60 drivers, BluSmart has placed an order for an additional 70 electric vehicles that will be delivered by October, Mr Jaggi says.
It plans to end the year with 150 EVs and 225 drivers.
Mr Jaggi sees a lucrative opportunity for green transport in the UAE market driven by an increase in its population and in tourist arrivals.
BluSmart's growth projections in the Gulf country call for a fleet of 1,200 EVs and a workforce of 1,800 drivers in 2025.
Within the next three years, the company aims to have a 10 per cent to 15 per cent of the UAE's market share as the country's fleet of taxis swells from 25,000 cars currently to 35,000 cars over that period.
The UAE government's push into renewable energy is expected to significantly transform the transport sector, with important implications for ride-hailing companies.
As a new entrant into the UAE, BluSmart is seeking to seize the momentum by challenging market rivals on car electrification. It directly manages its fleet and its drivers to ensure reliability of service, cleanliness of cars and its drivers cannot cancel bookings received on their BluSmart app.
Mr Jaggi says this offering will help it lure riders away from rivals in its home market India and, in new markets such as Saudi Arabia, where there are customer satisfaction issues around clean cars, on-time services and stable pricing policies.
Green transport is a key focus in the UAE's sustainability goals. In 2021, the UAE unveiled its Net Zero 2050 Strategic Initiative, a Dh600 billion ($163.37 billion) plan to invest in clean and renewable energy sources over the next three decades.
It was the first Gulf country to commit to achieving net-zero emissions by 2050.
Electric mobility is also part of the transformation into smart cities. Abu Dhabi has broken into the world's top 10 smartest cities, climbing three places from last year to 10th in the Smart City Index 2024 compiled by Switzerland's International Institute for Management Development (IMD), which was released in April.
Dubai also rose in the ranking of 142 cities, rising from 17th last year to 12th.
BluSmart, which is backed by BP's venture arm and Zurich-based sustainable investment firm responsAbility Investments AG, started in December 2019 in Delhi before the Covid-19 pandemic halted its operations in March 2020 for 18 months. It later expanded to Bengaluru.
BluSmart in India currently has a fleet of 8,000 EVs, more than 10,000 drivers, 4.2 million app downloads and CO2 emissions savings of nearly 40,000 tonnes, according to the company.
The company was co-founded by Mr Jaggi, a serial entrepreneur and petroleum engineer, after he started solar energy production business GenSol Engineering.
Venturing into electric mobility was the next logical step after establishing a renewable energy company focused on producing solar energy.
“I was looking for the next area of growth in the clean and green sector. We thought green mobility was the most appropriate area to move into … 2019 was early days for clean mobility and its adoption was even smaller than it is today,” he says.
With high fuel prices in countries such as India, “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”, he says.
A $1 trillion opportunity
With current technology advances in electric batteries, capacity will double and prices halve from current rates in the next 12 to 18 months, he says.
“The entire sector is going to have a huge amount of tailwind,” he says, which will encourage governments, banks and companies to invest in the industry.
He hopes to capitalise on an early-mover advantage to demonstrate the financial feasibility of the business to banks and governments looking for proven credentials, he says.
Despite challenges in electric mobility such as range anxiety and limited charging stations, these are all opportunities for entrepreneurs, Mr Jaggi says.
Indeed IHS Markit’s research on the future of transportation projects that app-based mobility services – which did not exist a decade ago – will become a $1 trillion market by 2040. These changes will herald major shifts for car makers and energy companies, as well as create big opportunities for new entrants.
BluSmart has raised $136 million in equity to date and aims to raise $200 million in the next three years.
Last month, in its pre-series B round, the company raised $24 million from responsAbility Investments and existing investors. The funds will be used for expanding the fleet and charging infrastructure expansion as well as to cover operational expenses.
Currently in its series B round, the company aims to raise $70 million in the next 12 months, Mr Jaggi says.
In the current financial year, BluSmart is projecting its revenue to reach nearly $90 million and to incur losses of about $30 million, he says.
The company has a target to reach break-even by end of 2025 and it expects a profit of $200 million to $250 million in 2026, as disruptions in the car and fossil fuel industries drive investments in the green transport sector, he says.
BluSmart is optimistic about its growth in new markets such as the UAE and Saudi Arabia.
“There is a great market in Dubai and we want to add Abu Dhabi because there's a lot of synergy between people going between Dubai and Abu Dhabi, whether it's for airports or entertainment or visiting government offices,” Mr Jaggi says.
“What we as a company like to do is go deep in geographies where we are present rather than go wide.”
Q&A with BluSmart co-founder Anmol Singh Jaggi:
Why is establishing a business with a social impact important to you?
Establishing a business with a social impact, such as reducing the environmental impact of mobility, is important to me because our move into clean mobility was driven by a passion for sustainability and the belief in Moore's Law, which suggests that as technology advances, capacities double and prices halve.
In short, we started BluSmart to decarbonise mobility at scale. For us, it was a natural step from a renewable energy company producing solar energy to venturing into electric mobility.
What new skills have you learnt in the process of establishing your start-up?
Building BluSmart from the ground up has taught me invaluable skills in resilience, strategic thinking and the importance of adaptability. The pandemic was one of the toughest times collectively for everyone – personally and as a business. BluSmart's mobility service was impacted. The health of our employees was something we were constantly monitoring and ensuring they remained safe through this critical period. The team showed a lot of resilience during these tough times and as things opened up we were able to quickly bounce back.
How does your business differ from other competitors in the markets you operate in?
We are committed to providing not just a sustainable option but also the highest level of service. Our goal is to set new standards for quality and reliability in every market we enter, ensuring that our customers have a consistently excellent experience. We prioritise clean, on-time, and reliable service, unlike competitors who struggle with high cancellations, unreliable drivers and poorly maintained cars.
If you had the chance to do it all over again, what would you do differently?
From an environmental standpoint, acting sooner is essential to mitigate the damage we’ve caused. As an entrepreneur, I recognise that early movers gain the greatest benefits. The companies that lead in adopting and driving change will be the ones to reap the most significant rewards. Those who entered the clean energy and mobility sectors early have a distinct advantage, just like early players in the fossil fuel and automotive industries. The key is to act before the sector becomes saturated, positioning ourselves as leaders and capturing the maximum potential as the industry evolves.
Did you set up the business at the right time for the market?
Yes, I believe we started BluSmart at exactly the right time. We recognised early on that the world was on the brink of a significant shift towards sustainability, especially in the mobility sector. We were way ahead of the curve by tapping into the EV sector when we launched BluSmart, anticipating the growing demand for clean, reliable, and eco-friendly transportation.
Where do you see yourself and the company in five years' time?
In five years, I envision BluSmart as the global brand that is the driving force behind a global revolution in urban mobility. We aim to be the largest and most influential EV ride-hailing company in the world, operating in major mega-cities across multiple continents. Our goal is not just to participate in the shift towards EVs, but to lead it – transforming entire urban ecosystems by providing zero-emission, reliable, and accessible transportation solutions.
Personally, I see myself continuing to innovate within the clean tech space, expanding our impact, and inspiring other entrepreneurs to prioritise sustainability.
COMPANY PROFILE
Company name: BluSmart
Date started: Mid-2019 in India and June 1 in UAE
Founder(s): Anmol Singh Jaggi, Punit Goyal, Rishabh Sood, Tushar Garg and Anirudh Arun
Based in: Delhi and Bengaluru, with international operations in the UAE
Number of staff: More than 700 employees
Investment stage: Series B
Investment raised: $136 million in equity
