Dat, a 23-year-old gig driver in Ho Chi Minh City, Vietnam, chose to work with Xanh SM, an electric taxi and motorbike service, over Grab, the leading player in Southeast Asia. Founded by Pham Nhat Vuong, Vietnam’s richest man, Xanh SM is known for its environmentally friendly approach and status as a Vietnamese company. The company rents out vehicles to gig drivers as well as providing ride-hailing services through its app.
Xanh SM has become popular since its launch in April 2023, with a fleet of mint-hued electric cars and scooters dominating Vietnam’s streets. However, some analysts question the company’s growth potential and its strategy of promoting Vinfast, Vuong’s brand of Vietnamese electric vehicles.
Vinfast has faced financial losses, with most of its sales coming from companies owned by Vuong, including Xanh SM. Despite challenges, Xanh SM plans to expand its services beyond Vietnam, with a focus on Southeast Asia. However, experts warn of the high costs and risks involved in such expansion efforts.
While Xanh SM is gaining popularity in Vietnam, some drivers have raised concerns about the quality of its electric scooters and potential liabilities for damages. Meanwhile, Vinfast continues to face competition and financial struggles in the EV industry. Despite these challenges, Vuong remains committed to supporting Vinfast’s growth.
With ambitious plans for expansion and a focus on electric mobility solutions, Xanh SM and Vinfast represent Vietnam’s growing presence in the EV market. As the company’s future remains uncertain, Vuong’s dedication to his vision for Vinfast persists, despite financial challenges and fierce competition.
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