The aggressive expansion plans of the electric taxi startup are set to challenge established players with an eco-friendly fleet and customer-focused services
BluSmart, the pioneering electric taxi service that commenced operations in Dubai this June, is gearing up to expand its presence across the UAE, with plans to enter the Abu Dhabi market and Saudi Arabia within the next 12 months. This move is part of its broader strategy to capitalise on the UAE's growing focus on sustainability and green transport.
The company's fleet currently consists of 30 Audi e-tron luxury electric vehicles, serving Dubai customers with zero-emission rides. BluSmart’s key selling points include the absence of driver cancellations and reliable, non-fluctuating fares that remain consistent regardless of peak traffic or weather conditions. Rides start at a base fare of Dh25, with options for car rentals beginning at Dh299 for a minimum of two hours.
Anmol Singh Jaggi, co-founder of BluSmart, revealed that the company has placed an order for an additional 70 electric vehicles, which are expected to be delivered by October in an interview to The Nation. BluSmart aims to close the year with a fleet of 150 EVs and 225 drivers, setting ambitious growth targets in the UAE market. By 2025, the company projects a fleet of 1,200 EVs and a workforce of 1,800 drivers, aiming to secure a 10-15 percent market share as the UAE's taxi fleet expands from the current 25,000 vehicles to 35,000 over the next three years.
The UAE's commitment to renewable energy is transforming its transport sector, creating a favourable environment for BluSmart's expansion. The government's Net Zero 2050 Strategic Initiative, which outlines a Dh600 billion investment in clean and renewable energy sources, further underscores the potential for growth in green transport.
As a newcomer in the UAE, BluSmart is positioning itself as a leader in the electrification of transportation, directly managing its fleet and drivers to ensure service reliability and customer satisfaction. This approach, Jaggi believes, will attract customers not only in the UAE but also in new markets such as Saudi Arabia, where there are concerns about clean cars, punctuality, and stable pricing.
Green transport is central to the UAE's sustainability goals, with electric mobility playing a key role in the country's transformation into smart cities. Abu Dhabi and Dubai have both risen in the global rankings of the Smart City Index, reflecting the nation's progress in this area.
BluSmart's journey began in December 2019 in Delhi, backed by BP's venture arm and Zurich-based sustainable investment firm responsibility Investments AG. Despite an 18-month halt in operations due to the COVID-19 pandemic, BluSmart has since expanded to Bengaluru, boasting a fleet of 8,000 EVs, over 10,000 drivers, and nearly 4.2 million app downloads. The company claims to have saved approximately 40,000 tonnes of CO2 emissions to date.
Jaggi, a serial entrepreneur with a background in petroleum engineering, initially founded BluSmart after establishing GenSol Engineering, a solar energy production business. Venturing into electric mobility was a natural progression, aligning with his commitment to renewable energy.
With advances in electric battery technology expected to double capacity and halve costs within the next 12 to 18 months, Jaggi anticipates significant investments in the industry from governments, banks, and companies. He believes that BluSmart’s early-mover advantage will demonstrate the financial viability of green transport, attracting further investment.
Despite challenges such as range anxiety and limited charging infrastructure, Jaggi sees these as opportunities for innovation and growth. According to IHS Markit, app-based mobility services, which were virtually non-existent a decade ago, are projected to become a $1 trillion market by 2040, signalling a major shift for car manufacturers, energy companies, and new entrants like BluSmart.
In the current financial year, BluSmart expects to generate nearly $90 million in revenue while incurring losses of around $30 million. However, the company is optimistic about reaching break-even by the end of 2025, with projected profits of $200 million to $250 million by 2026, driven by disruptions in the car and fossil fuel industries and a growing emphasis on green transport.