BlueSG announces sudden pause to car-sharing service from Aug 8, confirms layoffs

SINGAPORE: Electric car-sharing firm BlueSG announced on Monday (Aug 4) that it will suspend operations from Aug 8 at 11.59pm, catching users off guard. 

It also told CNA that the move will impact "a portion" of its workforce, adding that affected employees will receive "fair severance".

Calling it a "strategic pause", BlueSG said in a media release that it will launch a new service in 2026.

It will involve a new platform, a refreshed fleet with a new range of vehicles, an expanded network of pickup and drop-off points, as well as "greater reliability and a smoother user experience", the company added.

BlueSG is the only car-sharing platform that offers point-to-point services in Singapore.

"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," said BlueSG's chief executive officer Keith Kee.

"That’s why we’re taking bold steps now to pause, minimise distractions and focus our resources on delivering a completely new platform. It puts users at the centre by delivering unprecedented efficiency, reliability, scalability, and a completely reimagined user experience."

Users with remaining credits or subscriptions with the platform will be fully refunded by Aug 31. User accounts will remain accessible until Aug 31 at 11.59pm, the company said on its website.

"We apologise for the temporary disruption which may cause inconvenience, but we assure you that we’ll be returning with a smart, more seamless experience that will make your journey with BlueSG easier, more reliable and enjoyable," BlueSG said.

LAYOFFS

BlueSG said its decision to pause for a platform upgrade will impact "a portion" of its workforce. It declined to disclose specific numbers of those affected. 

Operations will be streamlined "significantly", said the company, adding that it is currently operating with a "core team".  

According to BlueSG, affected employees were informed on Monday morning. 

"Supporting affected employees remains a top priority - with fair severance, clear communication, and meaningful transition support provided. We’re also exploring potential redeployment opportunities across the group," the company said in response to CNA's queries.

"As we prepare for the next phase, we anticipate new roles will open up - and we genuinely hope to welcome back members of our original team when the upgraded platform launches."

ONLY FOUR DAYS' NOTICE GIVEN

Some BlueSG users were taken aback by the announcement, given the short four-day notice, and lamented the temporary loss of Singapore's only point-to-point car-sharing service. 

They acknowledged the need for an upgrade but questioned why operations had to stop entirely during the transition.

Others raised questions online as to whether an upgrade would mean higher prices when the service relaunches in 2026.

Mr Joel Tan said that he was surprised as he thought BlueSG was "doing fine".

"This is the second or third time that they have upgraded the system, and much scrutiny was on them during the most recent upgrade," the 33-year-old educator said.

However, Mr Tan also noted that the current BlueSG fleet was "not exactly the best", with some cars already being "prone to wear and tear".

Mr Tan said he uses BlueSG four times a week and has a basic membership, which costs S$8 (US$6) a month.

"I guess we will just wait for the new system to be out, but I am very curious to find out why they must stop all operations during the transition," he added.

He said that he was not too concerned over the pause, "on the condition that they do not charge fees (during the period)", but added that the pause will affect convenience when it comes to travelling.

Mr P Ong, who uses BlueSG’s free membership plan, said that though he was "quite surprised" by the move, it does not affect him much as he also uses other car-sharing services. 

The 24-year-old student said that he "used to rely" on BlueSG during peak hours when ride-hailing prices surged.

"I also appreciated BlueSG’s Point A to Point B rental model, but in practice, I often had to walk quite far just to find a car."

"It was also sometimes hard to find parking near my destination," he added.

"So, unless I planned ahead, it wasn’t very convenient."

A BlueSG user who only wanted to be known as Jeremy said that the temporary closure will impact his weekly routine and that he will now have to consider other transport options.

"I might have to explore owning a car, but that comes with significant cost considerations, so I'll need to evaluate carefully," the 30-year-old manager said.

When asked if he was worried about refunds and bills, he said that he had no major concerns.

"The (BlueSG) system has generally been reliable, so I'm not overly worried, though of course, I'll be watching how they handle this transition," he added.

"I understand this pause may be part of their obligations or business restructuring, and rather than dragging things out, I think it's better they address the issues head-on."

Some users also took to social media to voice their disappointment.

Lamenting the move on Reddit, one user said that BlueSG is his primary mode of transport to work because there is no need to worry about parking fees or topping up petrol.

Another conveyed his disbelief at the company's lengthy pause for a "platform upgrade", calling the situation "fishy".

NEW VEHICLES

The new platform will feature a "refreshed" vehicle line-up, BlueSG told CNA, adding that it will progressively retire its current fleet.

In response to questions about the charging facilities at car parks, BlueSG said it does not own the charging infrastructure, which is managed by TotalEnergies. 

"We’ve kept our stakeholders informed throughout the transition, and discussions on how the charging network may support the future platform are ongoing," the company said.

"We remain closely engaged to ensure a smooth and coordinated approach, and are committed to open communication as plans evolve."

On Tuesday, TotalEnergies said in response to CNA queries that its charging infrastructure currently remained operational.

"Our charging infrastructure, most of which are open to public (approximately 90 per cent), currently remains operational as we assess the impact of BlueSG’s decision on TotalEnergies Charging Services Singapore," it said.

Further updates on the new service, including timeline, features and launch plans, will be announced in the coming months, BlueSG said.

Following the announcement, the National Transport Workers' Union (NTWU) said it is ready to offer assistance to affected union members. 

While BlueSG is a non-unionised company, there are employees who are members of NTWU.

"In situations where there are individual union members who are in non-unionised companies, NTUC’s affiliated unions or associations will extend assistance to these affected members," said NTWU executive secretary Yeo Wan Ling.

She added that affected union members and workers may call 6743 0822 during office hours, or email ntwu [at] ntuc.org.sg.

Meanwhile, the Consumers Association of Singapore (CASE) said it was aware of BlueSG's plan to temporarily pause services.

"CASE has worked with BlueSG to create a dedicated channel to address matters related to the refund of credits and outstanding bills," the association said in a media release on Monday.

Customers who require assistance are advised to approach CASE via its hotline at 6277 5100 or its website at www.case.org.sg.

The Land Transport Authority (LTA) said BlueSG had informed it of its plans to cease car-sharing operations.

"Although car-sharing services are private commercial arrangements and are not regulated by LTA, we recognise that car-sharing services, as a form of shared services, provide commuters with an alternative to car access," said LTA.

The authority added that it would continue to support car-sharing operators interested in offering point-to-point services in Singapore by "facilitating the deployment of infrastructure to help their services to meet commuters’ needs".

In December 2023, BlueSG customers faced major disruptions when using its services. This included inaccurate charges and users being unable to find their reserved cars or parking spots, for instance.

At the time, BlueSG's former chief executive officer Kelvin Tay said that the glitches were due to "unexpected technical complexities" after systems migration updates.

The car-sharing platform waived its January subscription fee for users, but subscribers said then that the move was not enough.