Goldbell Confirms Purchase of BlueSG & Will Pump $70 Million to Grow It

By
Shawn Ambrose
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A few days ago, a little birdie told other little birdies that a certain local transport and engineering firm was going to take over BlueSG.

It was then revealed that BlueSG had been losing millions of dollars since it launched in 2017.

In reports of the rumoured acquisition, news outlets claimed that discussions had reportedly been going on for about a year, and that an in-principle deal had already been struck.

Well, now the new owners have officially confirmed the deal.

Goldbell Confirms Purchase of BlueSG & Will Pump $70 Million to Grow It

Goldbell Group confirmed on Friday (5 Feb) that it will complete the acquisition of electric-car sharing firm BlueSG this year.

The acquisition fee has not been revealed, but the company said it will invest more than $70 million to expand its business and technical capabilities over the next 5 years.

The takeover is expected to be finalised before August this year, and BlueSG will continue to be managed by its parent company – Bollore Group – until then.

Launched in 2017 with just 80 cars and 30 charging stations, BlueSG now has a fleet of around 650 cars, with over 1,200 charging points across the island.

It claims to be the world’s second-largest electric car-sharing service, but its fleet will only grow under Goldbell.

In its media release, Goldbell said it plans to add more vehicles to its fleet, including other types of electric vehicles.

There are also plans in the works to partner other companies so BlueSG users will be able to charge their vehicles using their electric vehicle charging points.

Goldbell will also establish a new research and development centre, along with a technology team that will work on developing new mobility technologies and algorithms.

While BlueSG’s headquarters will be in Singapore, there are plans to expand the business regionally.

Goldbell has declined to reveal the cost of the acquisition, but the deal is estimated to be transacted at $20 million to $25 million, according to ST.

Allegedly Lost Millions of Dollars Since Launch

BlueSG was reportedly planning to sell the business in June last year, and Goldbell said the two companies have been in talks for a deal since then.

According to data from the Accounting and Corporate Regulatory Authority, BlueSG has been incurring a growing amount of losses since its launch.

It reportedly made a loss of $3.4 million in 2017, $7.3 million in 2018, and $9.3 million in 2019.

What’s telling is that Bolloré’s car-sharing operations in Paris ended with losses too, despite massive government subsidies.

The efficiency and affordability of Singapore’s public and private transport service options may be to blame for BlueSG’s decline.

It remains to be seen if Goldbell will thrive in the electric car-sharing industry, given that it’s the firm’s first foray into the market.

Featured Image: Tang Yan Song / Shutterstock.com

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Shawn Ambrose
Email: [email protected]