Uber is in early negotiations to buy BluSmart, an EV ride-hailing company.

The discussions take place as Gensol Engineering, the parent company of BluSmart, struggles with liquidity. Since its parent company, Gensol Engineering, wants to get out of the capital-intensive industry, ride-hailing behemoth Uber is in the early stages of negotiations to buy BluSmart, an electric vehicle-based taxi service provider, according to sources who spoke to Moneycontrol. The discussions start when Gensol Engineering, the parent company of BluSmart, has cash problems. BluSmart denies ever having such a conversation with Uber. “BluSmart flatly rejects any talks or negotiations about being acquired by Uber. Such a development is completely theoretical and unfounded, according to the article. “As the top EV ride-hailing and charging infrastructure platform in India, BluSmart is committed to growing its business, extending its reach, and advancing sustainable mobility,” a BluSmart representative stated in response to Moneycontrol’s questions. BluSmart is Gensol’s entry into the electric car market. Gensol is best known for its solar engineering, procurement, and construction (EPC) company. Offering fully electric taxis as a green option in the quickly expanding urban transportation market, BluSMart was positioned as India’s response to Uber and Ola when it was first introduced in 2019. But the company has encountered several challenges throughout the years. BluSmart has experienced significant financial strain due to the high expenses of fleet acquisition, EV charging infrastructure construction, and driver incentives. Although substantial funds have been raised from investors, such as bp Ventures and other institutional supporters, profitability has proven difficult to achieve. Uber chose not to comment on the purchase. Economic Times was the first to report on the development.