Vietnam’s Xanh SM, an electric taxi and motorbike service, is gaining popularity among gig drivers like Dat, who values its environmentally friendly approach and status as a Vietnamese company. Launched in 2023 by Vingroup’s chairman Pham Nhat Vuong, Xanh SM differentiates itself from competitors like Grab by renting out vehicles to drivers in addition to providing ride-hailing services.
Despite some concerns about Xanh SM’s growth potential and Vuong’s strategy to promote his Vinfast EV brand through the platform, the company has expanded its fleet and operations in Vietnam and neighboring countries. While Xanh SM is the second most preferred ride-hailing app in Vietnam, it faces challenges related to quality and liability concerns at home.
Meanwhile, Vinfast, the first Vietnamese auto brand founded by Vingroup, has faced heavy losses as it struggles to establish itself in the EV industry. With competition like China’s BYD offering cheaper options, Vinfast has received poor reviews and faces challenges in pricing and scale. Vingroup itself has sold off subsidiaries and faced financial struggles, but Vuong remains committed to supporting Vinfast’s growth.
As Xanh SM aims to expand further in Southeast Asia and Vinfast works to establish itself in the competitive EV market, Vuong’s financial commitments and the companies’ strategies will be crucial to their success. Despite challenges, Vuong remains dedicated to supporting Vinfast’s growth, but industry experts warn that the competition and financial pressures could pose significant obstacles in the future.
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