BluSmart drivers ask for compensation over sudden suspension of services

The unexpected halt has left thousands of drivers without income or clarity about their employment status

A day after the suspension of services of electric cab ride-hailing BluSmart, drivers of the company are in a limbo and have demanded payment of arrears and compensation.

For the time being, the drivers’ associations have demanded that BluSmart must ‘immediately disburse all pending dues, including earned income and the promised weekly incentive of ₹8,000’, and provide three months’ income as compensation to all affected drivers to help them sustain their families during this period of uncertainty.

“We have sent our demand to the company (BluSmart) and asked for these compensations because most of our drivers are single earner of their families. The company has to help them go through this crisis. It has given us a week’s time, so we will wait, but if they do not meet our demands, we will come out on roads for protest,” Nitesh Kumar Das, Organising Secretary of Gig Workers Association (GigWA), told businessline.

He said this unexpected halt has left thousands of drivers without income or clarity about their employment status. There are more than 8,000 drivers affected only in the Delhi-NCR region, and there could be an equal number in Bengaluru too.

SEBI allegations

The suspension follows allegations by SEBI against BluSmart’s Co-founder, Anmol Jaggi, for misappropriating funds intended for electric vehicle (EV) procurement. SEBI has initiated a forensic investigation into Gensol Engineering, the affiliated company involved in the alleged financial irregularities.

Das informed that drivers were also forced to handover the keys of the cabs to the company management, without refunding a deposit of ₹5,000 that each driver is charged for EV chargers, which were deducted from drivers’ earnings.

Dharmendra Kumar, President, Amazon India Workers Union (AIWU), which has also joined GigWA in this fight for drivers’ justice, said most of the drivers are migrants from Uttar Pradesh and Bihar, and BluSmart has asked them to go back.

“This has come all of a sudden and this kind of disaster has hit them not only economically, but also their mental health, and that is why we are demanding three months’ window (payment) so that they get some sufficient resources and time to re-plan their lives,” Kumar said.

Need for accountability

Meanwhile, the Indian Federation of App-Based Transport Workers (IFAT), Telangana Gig and Platform Workers’ Union (TGPWU) expressed grave concern over the sudden suspension of operations by BluSmart and said this situation underscores the broader need for accountability, transparency and protections in the platform economy.

Companies like BluSmart must take responsibility for the well-being of their driver-partners, especially during such disruptions. Platform companies must be held accountable for their workforce and ensure social security, fair contracts and dignified treatment of workers. We urge government authorities and relevant regulatory bodies to intervene and ensure justice for affected drivers,” Shaik Salauddin, National General Secretary of IFAT and Founder President of TGPWU, told businessline.

While a company spokesperson declined to comment, the company sent out a mail to customers saying, “We’ve decided to temporarily close bookings on the BluSmart app. We truly appreciate your support. While we strive to be back soon to serve you with the same warmth and smile, we will initiate a refund within the next 90 days if services do not resume before then.”

Published on April 17, 2025