The sudden collapse of BluSmart, India’s first all-electric ride-hailing service, has sent shockwaves through the green mobility ecosystem. As operations across Delhi-NCR, Mumbai, and Bengaluru came to a halt, over 10,000 drivers have been left unemployed overnight. More critically, this event has raised serious concerns about the sustainability and governance of emerging clean transport ventures in India.

But where many see failure, Davinder Sandhu, Co-founder and Board Chair at Primus Partners, sees an opportunity. In his opinion article published in The Indian Express, Sandhu makes a compelling case for the Indian government to acquire BluSmart and integrate it into the newly launched Sahkar Taxi scheme. This move, he believes, could save thousands of livelihoods, boost India’s EV ambitions, and provide a model of ethical, sustainable urban transport.

BluSmart’s Collapse: A Wake-up Call

Founded in 2019, BluSmart stood out for its pioneering role in India’s electric vehicle (EV) transition. It built a reputation with zero cancellations, fixed pricing, and an eco-conscious approach, appealing especially to women, senior citizens, and urban professionals.

Unfortunately, its downfall has been dramatic. Amid allegations of financial misconduct involving its founders, operations were suspended abruptly. Most of the drivers, who did not own their EVs, now face no immediate alternative employment, particularly within the green transport sector. Their move from traditional platforms like Ola and Uber to BluSmart was seen as a leap towards a cleaner and fairer model—one that has now collapsed.

The Government’s Role: A Timely Intervention

Sandhu proposes that the government seize this crisis as a strategic opportunity to protect and build on BluSmart’s achievements. His recommendation is for the Ministry of Cooperation, in collaboration with the National Cooperative Development Corporation (NCDC), to take over BluSmart under a Special Purpose Vehicle (SPV).

The takeover would not be indefinite. Instead, the plan involves a phased disinvestment, transferring ownership to driver-owned cooperative societies within five to seven years. This gradual transition ensures stability, while laying the foundation for a driver-empowered mobility network under the Sahkar Taxi initiative.

What is the Sahkar Taxi Scheme?

Launched in early 2025 by Union Minister Amit Shah, Sahkar Taxi is India’s first government-backed cooperative taxi platform. It is designed to be the anti-thesis to private aggregator models, offering:

• Ownership rights to drivers

• Profit-sharing models

• Welfare benefits and insurance

• No high commission deductions

The first phase aims to onboard 20,000 driver-owners, focusing on urban regions with high demand for app-based transportation. Acquiring BluSmart would accelerate this rollout by providing:

• An existing EV fleet

• Trained EV drivers

• Charging and digital infrastructure

• Established user base and branding

Reviving Trust in Green Urban Mobility

Public confidence in green transport ventures has taken a hit following BluSmart’s collapse. Sandhu warns that failing to salvage BluSmart’s assets could derail India’s EV narrative, just when it's gaining momentum globally. Reintegrating BluSmart into Sahkar Taxi would send a strong signal that the government backs ethical and sustainable innovation, and is ready to step in when necessary.

The Nationally Determined Contributions (NDCs) under India’s Paris Agreement commitments hinge significantly on boosting clean transport. A successful transition of BluSmart would align with these climate action goals, while also demonstrating economic pragmatism and social responsibility.

A New Cooperative Blueprint for India

Sandhu cites global examples like Mondragon in Spain and Emilia-Romagna in Italy, where worker-owned cooperatives have not only thrived but expanded during economic disruptions. In India, where driver exploitation under aggregator models has become an issue, Sahkar Taxi promises to be more humane, inclusive, and transparent.

If India were to acquire and revive BluSmart, it could set a historic precedent—a case study in how public-private synergies can work towards climate resilience, inclusive growth, and technological sustainability.

Conclusion: A Test of Political Will

BluSmart’s downfall is more than just a company’s failure—it’s a litmus test for India’s EV policy and public-private cooperation frameworks. With infrastructure, manpower, and demand already in place, a timely acquisition could turn a crisis into a transformative leap forward.

Sandhu concludes that India must not let this moment pass. A well-planned government acquisition followed by cooperative transfer will not only protect clean jobs but also anchor India’s leadership in green urban transport.

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