Electric vehicle (EV) ride-hailing startup BluSmart Mobility has 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 Uber and Ola. The larger competitors operate with a dynamic surge-pricing system that raises and lowers cab fares based on demand and supply.
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.”
While BluSmart introduced the system, it continues to operate on the basis of a distance-based standard fare chart. For example, the fare for distances up to 3 kilometres is INR 199 during rush hours and INR 149 during relaxed hours. For 12 kms to 15 kms slab, the fares are INR 329 and INR 259 during rush hours and relaxed hours, respectively.
The updated pricing policy, effective from January 8, 2024, 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.
“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…,” Anirudh Arun, cofounder and chief operating officer of BluSmart, said in response to a query from ET.
In October, 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, the Gurugram-based startup raised USD 24 million, equivalent to around INR 200 crore, in fresh capital from existing investors, founders and the leadership team.
In an earlier round in May, when it raised USD 42 million, nearly 50% of the funding came from subscriptions by its six founders — Anmol Singh Jaggi, Punit Goyal, Anirudh Arun, Tushar Garg, Rishab Sood and Rahul Jain.
BluSmart operates in the Delhi-National Capital Region and Bengaluru with a fleet of 5,500 cabs. The company aims to expand its operations to nearly 8,000 EVs across Delhi NCR and Bengaluru by next year.
BluSmart owns and operates more than 4,000 EV chargers in 34 hubs. The company has plans to commercialise its charging infrastructure in the NCR and Bengaluru by making it accessible to other EV owners and fleet operators, as reported by ET earlier.
On September 5, 2023, BluSmart said it had surpassed an annual revenue run rate of INR 400 crore. The company has yet to file its financials for fiscal 2023 with the Registrar of Companies.
