BlueSG lays off staff ahead of operations pause to revamp app and fleet
BlueSG, a major player in Singapore with around 250,000 subscribers, said that it made the 'difficult decision to streamline operations significantly'. It did not reveal how many staff were affected, but confirmed that it is now operating with 'a core team'. 'We are working closely with affected employees to provide fair severance, career support, and where possible, explore redeployment opportunities within the wider group,' it said.
Its new platform is slated to be launched in 2026. There will be an expanded network of pick-up and drop-off points and a fleet of newer vehicles.
Keith Kee, chief executive officer of BlueSG, told The Business Times: 'We are not ending the service per se. We call it a pause, because it is in preparation for the upgrade.'
He said that building on the experience it has gained from its operations, it fully intends to come back with an improved product by revamping its platform and car fleet. 'We want to have a refreshed user experience. The new platform will feature a refreshed fleet and upgraded systems, designed to deliver a stronger performance and more seamless user experience.'
Existing BlueSG vehicles are 'not likely' to be carried over to its new chapter, and will be decommissioned or repurposed where necessary, he added.
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He did not elaborate on the cost of the reboot, but shared: 'This decision reflects a long-term strategic vision that's set by careful financial financing.'
BlueSG is also looking forward to investments from strategic partners who will also contribute technology and expertise to the company, he explained. 'But right now, I think the focus is on ensuring that our existing service and our existing users are able to take the pause, and that we address the current issues first.'
Common issues cited by users
In recent years, BlueSG had issues with feedback in online channels about unresponsive customer service, malfunctioning apps, and aged or unclean vehicles. An ex-BlueSG subscriber told BT that he stopped using the service earlier this year because the vehicles and charging stations were not well maintained, and the customer support was disappointing.
Technology issues are partly to blame, said a source familiar with the matter. This comes from the management having opted to develop its own in-house software solutions, which is more difficult than using or adapting off-the-shelf ones. BlueSG's app is rated 3.8 out of 5 stars on both Google Play and Apple's App store, with user reviews citing poor user experience and app issues.
Walter Theseira, associate professor of economics at the Singapore University of Social Sciences, said: 'I think (the shutdown) was expected. We know that the economics of car-sharing has always been challenging in Singapore, with most firms that have been in the space over the last few decades having folded.'
He said that BlueSG's fleet, comprising 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, making you unable to expand to points without charging.'
The EV fleet may also have contributed to the situation.
Theseira said that by the time Singapore engineering firm Goldbell bought out the operator in 2021, the first-generation Blue SG cars, which were Bolloré Bluecars, were already outclassed by other EVs. The operator's second-generation of cars, Opel e-Corsas, was a questionable choice, given the availability of better Chinese EVs.
Automotive consultant Vincent Ng echoed this viewpoint, saying that BlueSG's cars were limited in range and slow to charge, hampering their user-friendliness – and the operator's competitiveness.
Observers said that a new approach is needed for the car-sharing space in Singapore.
'Competitors like GetGo have shown that a clean-slate business model could outperform BlueSG, so that may have motivated the relaunch,' said Theseira, who thinks that BlueSG is likely to keep its existing customer base, but change its branding, operations and pricing model.
Ng said that a ground-up relaunch is viable, if access to the charging network remains. He added that the most valuable component of BlueSG at the time of Goldbell's takeover was not the car-sharing business itself, but the charging network. With that takeover, French energy company TotalEnergies acquired the charging network. 'BlueSG's charging network was the largest in Singapore in 2021, and it is still a valuable asset – more so than the cars or the business itself.'
GetGo is currently the largest car-sharing service in Singapore, with around 400,000 users. BlueSG's user base is now around 250,000, up from 140,000 in 2021; it recently surpassed seven million cumulative rentals since its start in 2017.
What customers can expect: processes for refunds, closures and more
The current BlueSG service will wind down its operations at 23.59pm on Aug 8. Matters such as billing, account closures, subscription adjustments and refunds will be managed until Aug 31.
The company said: '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.'
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 added.
BlueSG started out as a subsidiary of French conglomerate Bolloré Group in 2017, before its acquisition by Goldbell. At the time, Goldbell said that it planned to expand the car-sharing business regionally, and use BlueSG as the global headquarters.
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