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Straits Times
05-08-2025
- Automotive
- Straits Times
BlueSG needs time to develop software, refresh fleet, say ex-insiders after winding-down news
Sign up now: Get ST's newsletters delivered to your inbox The two-door electric cars that launched the BlueSG car-sharing service in 2017 are no longer in production. SINGAPORE – The need for a robust software to power the service and for better vehicles has been cited by former BlueSG insiders as two possible reasons behind the electric car-sharing service winding down operations on Aug 8 and relaunching in 2026. BlueSG said it was doing so to upgrade its platform, which includes enhanced technology and a refreshed fleet, to make the service more reliable and efficient. The software manages the vehicle fleet, works with the user database and handles payments. BlueSG switched to its current software in late 2023 from another one that was used before the car-sharing service was sold in 2021 to Goldbell, a Singapore-owned company known for commercial and industrial vehicle leasing. This was because the rights to use the previous software expired, Mr Ng Lee Kwang, a BlueSG board director between 2021 and 2023, told The Straits Times. The new software drew user complaints on issues such as car bookings and payments. Mr Franck Vitte, who founded BlueSG in 2017 and served as its managing director until October 2021, when it was sold, told ST on Aug 5 that the software needed by the car-sharing service is complex to develop and difficult to run reliably. Top stories Swipe. Select. Stay informed. 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He also suspects that the developers may have realised that a thorough rework of the foundations, rather than patching fixes to the software, is needed to ensure that the system will operate smoothly. Even though there are ready-made, off-the-shelf software solutions, adapting them to the specific requirement of BlueSG will take a lot of work, Mr Vitte said. This includes handling Electronic Road Pricing (ERP) charges, parking fee payments and having access to the call centre from the smartphone app. The two-door electric cars that launched the BlueSG car-sharing service in 2017 are no longer in production and some of the replacement parts are difficult to source. Mr Ng said there is a need for newer electric cars that can be charged up faster and have longer operating range, so that the cars can be used more frequently to generate more revenue and boost profitability. This comes as BlueSG posted a net loss of $31.1 million between January 2023 and March 2024, based on its latest publicly available financial statements. This is more than two times the $11.4 million net loss the company incurred in the financial year ended December 2022, according to statements filed with the Accounting and Corporate Regulatory Authority. The company attributed the losses to the heavy investments made over the years, which were part of its strategy to achieve its growth plans. It is a marked change of fortune for the firm, which had posted a $1.8 million profit in the financial year ended December 2021. BlueSG is Singapore's first electric-only car-sharing service. Its launch in 2017 was supported by the Land Transport Authority and the Economic Development Board. The car-sharing service has two types of electric vehicles in its fleet: a compact two-door hatchback, a specially built model for BlueSG that entered service in 2017, and the Opel Corsa-e, a larger, four-door hatchback, which was introduced in 2022. BlueSG's revenue leapt to $21.1 million in 2021, from $14.3 million in 2020. Revenue continued to rise steadily to $23 million for the 12 months ended December 2022, and to $24.6 million in the January 2023 to March 2024 period. No financial statement was filed for the 2023 financial year. Responding to ST's queries, BlueSG chief executive Keith Kee said the figures must be viewed in the context of the company's 'deliberate, front-loaded investment strategy'. He added that the company has invested about $70 million over the past years in building up BlueSG. 'We committed to scaling the business in a way that it would support long-term growth, and made a conscious decision to invest ahead of the curve, fully aware that it required upfront capital commitment,' said Mr Kee. In its 2021 announcement about its plans for BlueSG, Goldbell said it planned to invest more than $70 million over five years to grow the car-sharing service's fleet and back-end technologies to boost operational efficiencies and customer experience. Goldbell also aspired to take BlueSG to other cities in the Asia-Pacific. The car-sharing company said its relaunch in 2026 will see an upgraded platform, a refreshed car fleet and more locations for users to rent and return cars. The company is also laying off an undisclosed number of staff. The latest available financial statement, which is for the January 2023 to March 2024 period, showed that BlueSG's costs came to $40.3 million – 46 per cent more than the $27.6 million incurred in the January to December 2022 period. This was due to factors such as the cost of insurance, maintenance and storage of its electric vehicle fleet, which came up to a combined $9.3 million, 42.9 per cent more than 2022's figure of $6.5 million. BlueSG said it has a fleet of 'almost 1,000 electric vehicles' and more than 1,500 charging points. Since it was acquired by Goldbell, its subscriber base has grown from 140,000 to more than 250,000, but it declined to say how many users are active. BlueSG is unique among car-sharing services in Singapore because the hired car does not have to be returned to the same location from where the vehicle was rented out. Using the service involves signing up as a member and booking a car over a smartphone app. The app also unlocks and starts the car. The service is charged on a per-minute basis, instead of larger 30-minute or hourly blocks, which are more common.
Straits Times
04-08-2025
- Automotive
- Straits Times
Electric car-sharing firm BlueSG to wind down current operations on Aug 8, lay off staff
Sign up now: Get ST's newsletters delivered to your inbox SINGAPORE – BlueSG will wind down its current operations on Aug 8 at 11.59pm, the electric car-sharing company announced on Aug 4. It added that billing, account closures, and subscription adjustments and refunds will be managed until the end of the month. It said that it is embarking on a major platform upgrade to better serve the 'evolving needs of urban mobility' in Singapore. The upgraded platform will introduce a refreshed fleet, an expanded network with more pickup and drop-off points, and enhanced technology that will enable it to be more reliable and efficient. A BlueSG spokeswoman said the company is laying off staff, but did not disclose the number of employees affected. This, she said, 'reflects the reduced operational scale during the pause period'. 'We are working closely with affected employees to provide fair severance, career support and, where possible, explore redeployment opportunities within the wider group,' she added, noting that the company hopes to welcome back employees when new roles open up with the upgrade. The new service is slated for launch in 2026. BlueSG was bought by Goldbell, a Singapore commercial and industrial vehicle giant, in 2021 from Bollore Group, a French conglomerate that introduced the service here in 2017. Top stories Swipe. Select. Stay informed. 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BlueSG chief executive Keith Kee 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. 'That's why we're taking bold steps now to pause, minimise distractions and focus our resources on delivering a completely new platform.' The upgrade will be designed from the ground up, the company said. Existing users of the platform can look forward to exclusive privileges at the launch of the new service. Further updates, including timeline, features and launch plans will be announced in the coming months, BlueSG added. The Consumers Association of Singapore (Case) said it has worked with BlueSG to create a dedicated channel to address matters related to the refund of credits and outstanding bills. Those who need help may approach Case via its hotline on 6277-5100 or its website at BlueSG was launched in 2017 as the first electric car-sharing service in Singapore and as part of the Land Transport Authority's pilot programme for a national-level electric vehicle car-sharing initiative. The company now runs a fleet of almost 1,000 electric vehicles, with more than 1,500 charging points. The BlueSG spokeswoman said that since Goldbell acquired the car-sharing service in 2021, the platform has grown its subscriber base from 140,000 to more than 250,000. The company declined to disclose the number of active users when asked by The Straits Times. Currently, BlueSG offers three tiers of membership – the basic level is free, while the other two levels, which cost $8 and $18 a month, offer different privileges. Between 2023 and the second quarter of 2024, BlueSG underwent a 'technical migration' to stabilise the platform and improve the user experience. This was done without any disruption to service, although there were user complaints during the transition, which included issues with booking cars, as well as billing. The BlueSG spokeswoman said: 'Through that migration, it also became clear that the current infrastructure needed a decisive, future-ready upgrade – one that could better support the changing mobility landscape. Emerging technological advancements also reinforced the urgency to act decisively.' The company is evaluating new models that will gradually replace the old cars in the fleet. Dr Victor Kwan, a senior lecturer from Singapore University of Social Sciences (SUSS) who researches marketing-related subjects, was surprised that the company decided to take such a long break to make the transition instead of making an immediate switchover when the new platform is ready. He believes that users will leave for alternatives during the interim instead of waiting for the relaunch, so BlueSG will basically be restarting its business from scratch, besides bearing the cost of its car fleet sitting idle during the interim. Mr Vincent Low, 46, a sales manager in the energy sector, said it is the 'right move' for BlueSG to temporarily cease operations while it upgrades its platform. He recalled having problems booking cars when BlueSG last did the major upgrade and how the system has been 'very unstable' since. He looks forward to the upgraded platform, noting that BlueSG has recently introduced more types of rental packages and charging stations in more locations. 'They are making efforts, but (I) can see that their internal (affairs) are in a mess. They need time to do housekeeping and (to) put everything back on track,' he said. Ms Aisyah Mazlan, 28, an engineer, who uses BlueSG daily to take her 13-year-old brother to school before driving to work, hopes that after making users like her wait so long for the upgrade, 'the improvements had better be worth it'.
