BluSmart Mobility Unveils ‘Rush Hour’ Pricing in Revised Fee Structure

What is BluSmart Mobility?

BluSmart Mobility is an Indian ride-sharing company that offers 100% electric, sustainable and reliable mobility solutions. The company was founded in 2019 by Anmol Singh Jaggi, Punit K Goyal and Puneet Singh Jaggi, and operates in Gurugram, Delhi and Bengaluru. BluSmart’s fleet of vehicles includes the Mahindra e-Verito, Tata e-Tigor, Tata Xpres-T EV, Hyundai Kona Electric and MG ZS Electric. The company claims to have completed over 2 million rides and saved over 2,000 tonnes of carbon emissions.

What is the new pricing policy?

On January 8, 2024, BluSmart Mobility implemented a new pricing structure to cater to different times of the day. The fares during what the company terms as ‘Rush Hours’ will be higher by around 30% compared with ‘Relaxed Hours’. This is BluSmart’s first move away from having no differential fares, which it had marketed as a unique selling proposition against larger competitors Uber and Ola, who operate with a dynamic surge-pricing system that raises and lowers cab fares based on demand and supply.

The updated pricing policy defines rush hours for city rides as the morning hours (8.30 AM to 10.30 AM) and evening hours (5.30 PM to 8.00 PM). For airport rides, rush hours are 3.30 AM to 6.30 AM (city to airport) and 9.00 PM to 1.00 AM (airport to city). The rush-hour pricing will be applicable only for Monday to Friday for city rides, but on all days for airport rides.

According to the company’s website, the fare for distances up to 3 kilometres is Rs 199 during rush hours and Rs 149 during relaxed hours. For 12 kms to 15 kms slab, the fares are Rs 329 and Rs 259 during rush hours and relaxed hours, respectively.

Why did BluSmart introduce the new pricing policy?

In a notification to users, BluSmart said: “During these specified rush hours, you’ll notice a slight increase in fares as there’s increased traffic that might lead to longer trip durations. By slightly adjusting the fares for these hours, we aim to enhance the availability and reliability of rides.”

Anirudh Arun, cofounder and chief operating officer of BluSmart, said in response to a query from ET: “To uphold our commitment to fare transparency, BluSmart has introduced a fixed pricing structure for different times of the day for our customers. This change is a strategic move to align with industry benchmarks. Our new pricing policy ensures that our customers pay what they see on the app…”

In October 2023, ET reported that BluSmart tweaked its fare model with an aim to expand its user base. At the time, the company had reduced the range of its fare slabs from 5km to 3km.

On December 21, 2023, the Gurugram-based startup raised $24 million, equivalent to around Rs 200 crore, in fresh capital from existing investors, founders and the leadership team.

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