In India, the electric vehicle (EV) taxi industry is still in its infancy, with startups like BluSmart dominating the market. The area suddenly becomes humming as Ola and Uber enter with enormous aspirations. What will this category see next?
Tough Competition for a Startup:
Although ride-hailing services have embraced electric vehicles (EVs) and they have been around for a while, the change has been glacial in India.
With Uber’s agreement to deploy 25,000 electric vehicles and Ola’s announcement that it would roll out 10,000 vehicles in a year across Bengaluru, things may be about to change.
With its no cancellation and zero surge offerings, all-electric cab startup BluSmart, which has gained ground over the last few years in Delhi-NCR, is competing with the two industry giants.
Taxis are difficult to electrify:
The demand for electric vehicles is still outpacing the supply. With a production capacity of only 50,000 units yearly, Tata Motors is by far the largest supplier, though it has intentions to increase that number in the upcoming fiscal year.
Also, operating EV taxis requires a unique algorithm at the backend, which once more cannot be copied and pasted from other nations.
Long Road Ahead:
“Elements that exist in India tend to have a shorter range than those in other markets, public charging infrastructure is still gaining traction, and the majority of fleet operators have some private charging capacity in hand, so the technology should match that. This adventure is yet to be accomplished”, added Prabhjeet Singh, the head of Uber India and South.
Work-in-Progress:
Notwithstanding the significant ambitions that Ola and Uber have revealed to electrify their fleet, the process will take time. According to Singh, the 25,000 electric vehicles would be deployed over the course of three years. Senior management at BluSmart predict that by the time Ola and Uber figure out the basics, their company would have significantly expanded into the top six cities in India.
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