Civic Mail Hyderabad

BluSmart shutdown leaves over 10,000 drivers jobless, sparks outrage from Transport Workers’ Union

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BluSmart's sudden shutdown has left thousands of drivers and employees jobless, prompting the Indian Federation of App-Based Transport Workers to condemn the move as "economic violence" and demand immediate action from the company and government. Intro: The Indian Federation of App-Based Transport Workers (IFAT) has slammed BluSmart's abrupt suspension of operations, leaving over 10,000 drivers and 800 employees without jobs overnight.
Blusmart Shutdown Leaves Over 10,000 Drivers Jobless, Sparks Outrage From Transport Workers’ Union

Hyderabad: Shaik Salauddin, Co-founder and National General Secretary of the Indian Federation of App-Based Transport Workers (IFAT), has strongly condemned the abrupt suspension of operations by BluSmart, which has left over 10,000 drivers and 800 employees without jobs overnight. Describing the move as “economic violence” and a “blatant violation of workers’ rights,” IFAT has called for immediate action and accountability.

In a statement issued after the shutdown, Salauddin called the closure a cruel betrayal of thousands of workers who had dedicated their time and resources to the company. “These drivers have invested their lives and labor into BluSmart. Now they have been left in the lurch without notice, support, or compensation. They are human beings with families to feed and debts to pay. This sudden closure shows a shocking disregard for their basic rights,” he said.

IFAT has demanded that BluSmart immediately compensate all affected drivers and employees. The union is also calling for urgent government intervention to investigate the circumstances surrounding the company’s closure. Salauddin urged regulatory authorities to take steps to ensure that such actions are not repeated, highlighting the need for enforceable worker protections in the platform economy.

The union reiterated the importance of a mandatory framework that includes severance pay, job security provisions, and social security coverage for workers engaged by platform-based companies. Without such measures, IFAT warned, millions of workers remain vulnerable to sudden unemployment without recourse or safety nets.

“This is a wake-up call,” Salauddin said. “The platform economy cannot be allowed to function without accountability. If workers are the backbone of this industry, then the industry must answer to them. We will not rest until justice is served for BluSmart workers.”

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