BlueSG Pauses Operations Amidst Software Woes and Fleet Overhaul
Electric Car-Sharing Firm Aims for 2026 Relaunch with Upgraded Systems
Singapore’s pioneering electric car-sharing service, BlueSG, is ceasing operations on August 8th, with plans to resume in 2026. The temporary shutdown is driven by a significant overhaul of its technological platform and a refresh of its vehicle fleet, aiming to resolve ongoing reliability issues and enhance user experience.
Technical Glitches and Strategic Shifts
Former BlueSG insiders suggest that persistent problems with the service’s software have been a major factor. The company transitioned to a new software system in late 2023, replacing a previous one whose usage rights expired. This new system has reportedly generated user complaints concerning car bookings and payment processing.
Franck Vitte, BlueSG’s founder and former managing director, highlighted the inherent complexity in developing and reliably operating such software. He indicated that the company might need to undertake a fundamental rework rather than simple bug fixes to ensure smooth operations.
“While it is possible to continue the service and make the switch to a new software platform when it is ready, the company’s decision to take a pause in this way would allow it to focus on developing the planned changes and not be distracted by having to correct bugs.”
—Franck Vitte, Founder of BlueSG
Vitte also pointed out that even off-the-shelf software solutions require substantial customization for BlueSG’s specific needs, such as integrating Electronic Road Pricing charges, parking fee payments, and direct call centre access via the smartphone app.
Fleet Modernization and Financial Performance
The vehicle fleet is also due for an upgrade. The original two-door electric cars, first introduced in 2017, are no longer in production, leading to difficulties in sourcing replacement parts. Ng Lee Kwang, a former BlueSG board director, emphasized the need for newer electric vehicles with faster charging capabilities and longer operating ranges to increase vehicle utilization and profitability.
BlueSG has experienced a significant financial downturn. Between January 2023 and March 2024, the company reported a net loss of S$31.1 million, a nearly threefold increase from the S$11.4 million loss in the financial year ending December 2022. This marks a stark contrast to the S$1.8 million profit recorded in 2021.
CEO Keith Kee attributes these losses to a “deliberate, front-loaded investment strategy,” with approximately S$70 million invested over the years to scale the business. Goldbell, which acquired BlueSG in 2021, had initially pledged over S$70 million in investment over five years to enhance fleet, technology, and customer experience, with aspirations to expand into other Asia-Pacific cities.
The company’s operational costs have also surged, with expenses reaching S$40.3 million from January 2023 to March 2024, a 46% increase compared to the previous year. This rise is partly due to a 42.9% jump in costs related to insurance, maintenance, and storage of its nearly 1,000-strong electric vehicle fleet.
Future Outlook and User Base Growth
BlueSG’s relaunch in 2026 promises an upgraded platform, a revitalized car fleet, and expanded rental locations. The company is also implementing an undisclosed number of staff layoffs as part of this transition. Despite the operational pause and financial challenges, BlueSG’s subscriber base has grown from 140,000 to over 250,000 since its acquisition by Goldbell. The service, unique in Singapore for its one-way rentals, charges users on a per-minute basis.
