BluSmart Introduces Revised Pricing Model, Including Increased Rates During ‘Rush Hour’
- ByStartupStory | January 9, 2024
BluSmart, the electric vehicle (EV) ride-hailing company, has unveiled a fresh fare structure distinguishing between “relaxed hour” and “rush hour”, embracing surge pricing reminiscent of major cab aggregators like Uber and Ola.
“Starting 8.01.2024, we are introducing a new pricing structure for different times of the day…during these rush hours you will notice a slight increase in fares as there is increased traffic that might lead to longer trip durations,” the company stated.
For city rides, the rush hours will span from 8:30 am to 10:30 am and 5:30 pm to 8 pm. Concurrently, airport rush hours are designated from 3:30 am to 6:30 am and 9 pm to 1 am in Delhi and Bengaluru, where BluSmart operates.
This decision follows recent meetings between transport departments of various states, including Delhi, and representatives of ride-hailing firms to assess surge pricing. However, the draft of the Motor Vehicle Aggregator Scheme, 2023, approved by Delhi’s chief minister Arvind Kejriwal, does not accommodate surge pricing.
Contrary to BluSmart’s initial claim of zero surge pricing on its website for enhanced customer experience, cofounder Anmol Jaggi clarified the differentiation: “Surge price is unpredictable, our pricing is just a true and transparent reflection of effort by driver partners during rush hours. Surge is non-transparent & arbitrary, what @BluSmartIndia has done is to make it clear & upfront on what the pricing would be.”
During rush hours, the fare will rise by about 15 percent, while rates during the relaxed hours will be more economical, according to Jaggi.
BluSmart, securing approximately $24 million in funding in December 2023 from existing investors like BP Ventures, as well as contributions from founders and the leadership team, aims to expand its fleet to 10,000 vehicles by March 2024, doubling its existing count of 5,000 cars.
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