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Bengaluru's Kempegowda International Airport (KIA) is currently grappling with a worsening transportation crisis, primarily affecting passengers who rely on cab services for commuting to and from the airport. Already facing challenges with the availability of Ola and Uber cabs, the situation has been further exacerbated by the recent cessation of operations by two electric cab operators: BluSmart and Refex eVeelz. This double blow presents significant inconvenience to travelers, particularly given the increasing passenger traffic at the airport. The exit of these electric cab services not only reduces the overall supply of transportation options but also raises concerns about the airport's commitment to sustainable and environmentally friendly transportation solutions. The sudden withdrawal of these operators highlights the complex interplay of regulatory scrutiny, business viability, and contractual obligations in the rapidly evolving transportation sector.
BluSmart, a ride-hailing startup associated with Gensol Engineering, has abruptly suspended new ride bookings across key metropolitan areas including Delhi-NCR, Mumbai, and Bengaluru. This decision follows an investigation initiated by the Securities and Exchange Board of India (SEBI) into Gensol Engineering, casting doubts on the financial stability and long-term prospects of BluSmart. The SEBI probe introduces a layer of uncertainty that directly impacts BluSmart's operational capacity and investor confidence. The suspension of services across multiple cities indicates a systemic issue rather than an isolated problem confined to a single region. This move is particularly concerning for passengers in Bengaluru who had come to rely on BluSmart as a viable alternative to traditional cab services. The abrupt nature of the suspension leaves many travelers stranded and further strains the already limited cab availability at the airport. The situation underscores the importance of regulatory oversight and due diligence in ensuring the reliability and sustainability of emerging transportation companies.
Concurrently, Refex Green Mobility Ltd (RGML), a subsidiary of Refex Industries, has officially announced the streamlining of its operations in Bengaluru. As part of this strategic realignment, the company is phasing out its airport-based EV taxi services, which were previously managed through Refex EV Fleet Services. According to the company, this decision reflects a strategic pivot towards prioritizing the scaling of electric mobility solutions for enterprise and institutional clients through the establishment of long-term partnerships and the cultivation of stable demand. This suggests a shift in focus from individual passenger services to more predictable and lucrative business-to-business (B2B) and business-to-business-to-consumer (B2B2C) models. While the company frames this move as a strategic enhancement, it nonetheless contributes to the diminished availability of cab services at Kempegowda International Airport. The simultaneous exit of BluSmart and Refex creates a significant void in the transportation ecosystem, leaving passengers with fewer options and potentially longer wait times.
Interestingly, there exists a notable connection between Refex and BluSmart. Earlier in the year, Refex Green Mobility had unveiled a substantial Rs 315 crore agreement to procure 2,997 electric vehicles from Gensol Engineering, with the intention of leasing these vehicles to BluSmart. This proposed transaction suggested a collaborative effort to bolster the electric vehicle fleet and expand the availability of eco-friendly transportation options. However, Refex subsequently rescinded the proposal, citing "evolving commitments" on both sides as the primary reason for the withdrawal. The dissolution of this deal highlights the volatile nature of business partnerships and the challenges associated with aligning strategic objectives in a dynamic market environment. The failed acquisition not only impacts the growth trajectories of both companies but also contributes to the overall uncertainty surrounding the availability of electric vehicles in the transportation sector. The intricate web of partnerships and agreements underscores the complexity of the transportation landscape and the potential for unforeseen disruptions to impact service delivery.
The impact of these developments is particularly acute given the steady increase in passenger traffic at Kempegowda International Airport. In the last financial year, the airport handled 41.88 million travelers, representing an 11.6 percent increase compared to the 37.53 million passengers recorded in the previous year. This surge in passenger volume places increased strain on the existing transportation infrastructure, making the shortage of airport cabs even more pronounced. Passengers frequently report experiencing long wait times and encountering inadequate fleets at the designated Ola-Uber pick-up zones. The combination of rising demand and diminishing supply creates a perfect storm of transportation challenges, exacerbating the inconvenience for travelers. The lack of readily available cab services not only affects the overall airport experience but also raises concerns about the efficiency and accessibility of the airport's transportation network.
Despite repeated attempts to solicit comments, Bangalore International Airport Ltd (BIAL), the operator of KIA, remained unavailable to provide any official statement regarding the matter. This lack of communication from BIAL further fuels concerns about the airport's responsiveness to the growing transportation crisis. The silence from airport authorities leaves passengers and industry stakeholders alike in the dark, hindering efforts to address the underlying issues and implement effective solutions. The absence of a proactive response from BIAL raises questions about the airport's preparedness to manage the evolving transportation needs of its passengers. The airport's inability or unwillingness to address the situation publicly contributes to the overall sense of frustration and uncertainty surrounding the availability of cab services.
Sources familiar with the matter indicate that the combined exit of Refex and BluSmart is likely to intensify the existing cab shortage at the airport. BIAL had previously established a partnership with Refex and initiated services in June 2024, including the introduction of pink taxis driven by women, exclusively for female passengers. This initiative aimed to enhance safety and convenience for women travelers. Prior to the partnership with Refex, BIAL had terminated collaborations with earlier operators such as Meru and Mega. The decision to favor Refex reflected a strategic shift towards prioritizing electric vehicle services and promoting environmentally friendly transportation options. However, with both Refex and BluSmart now halting operations, the airport finds itself in a precarious position, facing a significant reduction in cab availability and increased inconvenience for passengers. The reliance on a limited number of operators exposes the airport to vulnerabilities in the transportation ecosystem.
Another source revealed that airport taxis operating through BIAL's official 'BLR Pulse' mobile application were predominantly linked to Refex, which operated a 100 percent electric fleet. This reliance on Refex for the BLR Pulse service underscores the airport's commitment to promoting electric vehicles and reducing its carbon footprint. Many passengers who were unable to secure cabs through Ola and Uber often relied on BluSmart and Refex as alternative transportation options. The exit of these services disproportionately affects these passengers, leaving them with even fewer choices and potentially longer wait times. The loss of environmentally friendly transportation options is also a setback for the airport's sustainability efforts. The situation highlights the importance of diversifying transportation options and reducing reliance on a single provider to mitigate the impact of unforeseen disruptions.
In March 2023, BluSmart Mobility launched a dedicated cab pickup zone at Bengaluru airport, following the example of Ola and Uber. This initiative aimed to streamline the pickup process and enhance the overall passenger experience. Other aggregators, such as Rapido, Namma Yatri, QuickRide, and Shoffr, do not currently have dedicated pickup zones at the airport. However, dedicated airport taxi services, such as Refex and KSTDC (Karnataka State Tourism Development Corporation), are permitted to pick up passengers directly in front of the terminals. This distinction highlights the varying levels of access and operational privileges granted to different transportation providers. The absence of dedicated pickup zones for certain aggregators may limit their ability to effectively serve passengers at the airport. The presence of dedicated pickup zones for specific operators reflects a strategic effort to manage traffic flow and improve the overall efficiency of the transportation network.
Despite the challenges, a BIAL official stated that passengers can continue to book rides through Ola, Uber, Karnataka State Tourism Development Corporation (KSTDC), WTi rental cabs, as well as BMTC’s Vayu Vajra and KSRTC’s inter-city Flybus services. This statement attempts to reassure passengers that alternative transportation options remain available. However, it fails to fully address the underlying concerns about the overall shortage of cab services and the potential for increased wait times. The availability of alternative transportation options does not necessarily guarantee a seamless and efficient airport experience. The statement also overlooks the fact that many passengers prefer cab services for their convenience and flexibility. The reliance on public transportation options may not be suitable for all passengers, particularly those traveling with heavy luggage or those seeking a more direct and personalized transportation experience.
In a statement, Refex asserted that it continues to offer high-quality mobility services through its integrated B2B and B2B2C EV platform, featuring company-owned EVs, trained driver partners, and a tech-driven operations framework. The company emphasized its commitment to providing reliable and sustainable transportation solutions to its enterprise and institutional clients. Since its launch in March 2023 with 24 vehicles, Refex’s Green Mobility vertical has expanded to encompass nearly 1,300 EVs. The company serves Bengaluru, Chennai, Hyderabad, and Mumbai across various use cases, including employee transport, corporate rentals, airport transfers, and partnerships with leading ride-hailing platforms. This statement underscores Refex's continued commitment to the electric vehicle market, despite its decision to phase out airport-based taxi services in Bengaluru. The company's focus on B2B and B2B2C models suggests a strategic shift towards more predictable and sustainable revenue streams. The expansion of its electric vehicle fleet and the diversification of its service offerings demonstrate Refex's long-term vision for the electric mobility sector. The overall situation at Bengaluru airport highlights the challenges of relying on a limited number of operators and the importance of fostering a diverse and competitive transportation ecosystem. The need for BIAL to proactively address the cab shortage, improve communication with passengers, and explore alternative transportation solutions is evident. The airport's ability to effectively manage the transportation needs of its passengers will be crucial in ensuring a positive and seamless travel experience.
Source: Double whammy: Bengaluru airport cab crunch deepens as BluSmart, Refex pull out