Negotiations are part of Blusmart's plan to resume taxi action. Blusmart should serve as Uber's fleet partner.
“Uber has now withdrawn its interest,” said one person quoted above, anonymously. “Its main focus is depreciation of cars in the Blusmart fleet. The price required for transition does not meet its valuation.”
This is the second setback for Blusmart created by Anmol Jaggi in a troubled 4 months. last month, ₹31.5 billion can be used to sell 2,997 cars to a Chennai-based trans-revocation group with a value of ₹Rs 10.5 lakh per vehicle was cancelled.
Also Read | Gensol sponsor loses more than half of ownership
According to the above-mentioned personnel, Uber's team conducted an early assessment of Blusmart's fleet after negotiations began in March. A key problem is that electric vehicles (EVS) are depreciated very high, something that Blusmart requires is not available. Mint cannot independently verify the price required by Blusmart.
before Mint According to data from used car players such as CARS24 and Spinny, EVS is worth faster than traditional fuel cars. According to CARS24, unlike electric vehicles, popular ICE (internal combustion engine) models can retain 50% of their value for three to five years. Spinny's observations show that the price gap for older EV models can be up to 6% using older ice models.
Another issue that arose in the negotiations was that lenders Electric Power Finance Corporation (PFC) and the Indian Renewable Energy Development Agency (IREDA) assumed a fleet of approximately 5,000 cars owned by Gensol.
Gensol's loan exceeds ₹The lenders bought 663 million yuan from these lenders and rented it to Blusmart.
The person quoted above said: “People have doubts about whether a car can be rented to Uber. The company is advised not to take risks because there is some regulatory overhang.”
Read this | A gap of 26.2 billion in over a year? ”> How Gensol's lender misses A ₹The 26.2 billion gap in more than a year?
Queries sent to Uber and Blusmart by email on Friday were not answered until release time.
“Potential buyers have to worry among the potential buyers what value they will reach from Blusmart,” said Shriram Subramanian, founder and managing director of Ingovern Research Services, an agency consulting firm. “The cars and issues related to that value.”
Subramanian added that buyers knew it was a distress sale, so they would work to negotiate prices.
To be sure, Blusmart follows a business model for an asset in which it does not directly own its taxi fleet. Instead, it picked up the car from the rental partner.
About 5,000 of its fleet of more than 8,000 cars come from Gensol, while also working with some partners such as Japanese financial services firm Orix and Clime Finance.
Blusmart's board has co-founder Anmol Singh Jaggi; Sophia Nadur, BP Venture Capital Director in Asia and the Middle East; Inderpreet Wadhwa, former CEO of Azure Power; Dharmichand Sunil Kumar, who is registered as a director in nearly twenty companies.
and this | Gensol Fast Charging Blu-ray. But their connection is a governance problem
Some visuals were reportedly seen in April, where the Blusmart car was renamed Uber Green. According to a second person who realized these developments, the cars were not owned by Gensol, but another fleet partner of Blusmart, which could be a deal with Uber.
The rapid shift in events has made things difficult for Blusmart since Gensol Engineering downgraded through the rating agency ICRA in March. The PFC and IREDA also filed a complaint with the company after Sebi's interim order against Gensol and its sponsors Anmol Singh Jaggi and Puneet Singh Jaggi, which filed a complaint with the Delhi Police's Department of Economic Offensive (EOW).
According to a pti According to reports, the Enforcement Bureau raided Gensol and detained promoter Puneet Singh Jaggi. His brother is said to be currently in Dubai.
Meanwhile, Blusmart is reportedly talking to climate-centric funds such as Eversoursource Capital for a downturn in sales, but has not yet been achieved.
Gensol Engineering's share price has lost more than 90% of its value since the beginning of the year, while Nifty's share price has risen by 2%.
And Read | More than half of Uber's 1 million fleet includes bicycle taxis and cars
