BlueSG says it will pause its car sharing operations from Aug 8

[SINGAPORE] Car sharing operator BlueSG on Monday (Aug 4) announced that it would pause its car sharing operations from Aug 8 while it prepares for a major upgrade to its tech platform.

The move will set the stage for a refreshed platform, designed to meet the evolving needs of urban mobility through improved technology and improved service delivery, Blue SG said.

The new platform is slated to be launched in 2026.

Keith Kee, chief executive officer of BlueSG, said: “As the landscape evolved and we observed the potential scale of car sharing users, it became clear that the current infrastructure of BlueSG needs to be upgraded fast to meet the demands of tomorrow.”

Designed with a robust backend architecture and next-generation technology, it draws on lessons learnt from the company’s journey in Singapore thus far and aims to address limitations of the current platform, Blue SG said.

It will be powered by an expanded network of pickup and drop-off points and a newer range of vehicles, BlueSG said.

In line with the upgrade, the current BlueSG service will wind down its operations on Aug 8, 2025, at 23.59pm.

Matters such as billing, account closures, and subscription adjustments and refunds will be managed until Aug 31, 2025.

“BlueSG is committed to ensuring a transparent, efficient and smooth process for users, with clear communications, timely updates, and dedicated customer support throughout the process,” the company said.

In a statement on Monday, the Consumers Association of Singapore (Case) said that it has worked with BlueSG to set up a dedicated channel for handling credit refunds and outstanding bills to support affected users.

Customers requiring assistance may approach Case via its website or hotline, the association said.

Shutdown not a surprise

Industry observers told The Business Times that the shutdown of BlueSG in its current form was not entirely a surprise.

Walter Theseira, associate professor of economics at the Singapore University of Social Sciences, said: “I think (the shutdown) was expected as we know that the economics of car sharing have always been challenging in Singapore, with most firms that have been in the space over the last few decades folding.”

He said that BlueSG’s fleet, which is comprised entirely of electric vehicles (EVs), may have been a hindrance to expansion.

“The bigger issue is that (an all EV fleet) boxes you in somewhat, being unable to expand to points without charging.”

The cars themselves may also have contributed to the situation.

“By the time of the buyout, the first-generation BlueSG cars were completely outclassed. Their second-generation Opel e-Corsa models were a questionable choice, given the availability of better Chinese EVs,” added Theseira.

BlueSG was established in 2017. Originally a subsidiary of French conglomerate Bolloré Group, it was acquired by Singapore automotive group Goldbell in 2021. At the time, Goldbell said it planned to expand the car-sharing business regionally, with BlueSG serving as the global headquarters.

Automotive consultant Vincent Ng echoed that sentiment, saying that BlueSG’s cars were limited in range and slow to charge, hampering their competitiveness and user-friendliness.

Observers said that a new approach is needed for future progress, especially when looking at car sharing competitors in Singapore.

“Competitors like GetGo have shown that a clean slate business model could outperform BlueSG, so that may have motivated total relaunch,” said Theseira, who added that BlueSG would likely keep its existing customer base but change the branding, operations and pricing model.

Ng said that a ground-up relaunch is viable, if access to the charging network remains.

He noted that the most valuable component of BlueSG at the time was not the car sharing business, but the charging network. In 2021, when Goldbell took over the car sharing business, French energy company TotalEnergies acquired the charging network.

“BlueSG’s charging network was the largest one in Singapore in 2021, and it is still a valuable asset, more so than the cars or the business itself.”

In its last update in 2020, BlueSG had 80,000 users. Currently, GetGo is the largest car sharing service in Singapore with around 400,000 users.

-This story is developing, please check back for more.