BlueSG to pause operations, revamp fleet amid complaints of vehicle, app issues

[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 and car fleet amid complaints of car and app issues.

BlueSG, which is a major car sharing player in Singapore with around 250,000 subscribers, said the new platform is slated to be launched in 2026. There will be an expanded network of pick-up and drop-off points and a newer range of 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.”

Kee said that building on the experience it has gained from operations, it fully intends to come back with an improved product by revamping its platform and car fleet.

“We want to have a completely refreshed user experience. So the new platform will definitely feature a completely 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 and will be decommissioned or repurposed where necessary, he added.

He did not elaborate on the cost of the reboot, but said: “This decision reflects a long term strategic vision that’s set by careful financing, financial or planning.”

BlueSG is also looking forward to investments from strategic partners who will also contribute technology and expertise to the company, he said.

“But right now, I think the focus is on making sure that our existing service and our existing users are able to take the pause and to make sure that we address the current issues first,” he added.

Common issues cited by users

In recent years, BlueSG had issues with common feedback in online channels of unresponsive customer service, malfunctioningcut apps and aged or unclean vehicles.

An ex-BlueSG subscriber told BT he stopped using the service earlier this year as 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, as the management 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 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 EV fleet 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.

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.”

Currently, GetGo is the largest car-sharing service in Singapore with around 400,000 users. BlueSG’s user base has expanded to around 250,000 now from 150,000 in 2021 and recently passed 8 million cumulative rentals since being established in 2017.

What customers can expect: processes for refunds, closures, and more

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.

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