Green SM in pole position to take e-taxi market share

Customers in Hanoi can now book an e-taxi through Green SM using an app or hotline number. According to Green and Smart Mobility JSC (GSM), Vietnam’s first pure electric taxi company, the service will be expanded to at least five provinces and cities this year.

Green SM in pole position to take e-taxi market share

Nguyen Van Thanh, CEO of GSM said, “Green SM was established in response to the national climate objectives, which include efforts to reduce transportation emissions. We offer a new standard of transportation service with outstanding quality, not just serving people but also connecting and forming a green and smart mobility ecosystem across Vietnam.”

Green SM provides customers with two service options: GreenCar, a standard taxi service, and LuxuryCar, a premium taxi experience that uses the VinFast VF34 and VF8 models. It aims to add the VinFast VF 5 Plus model to the GreenCar fleet shortly as well as increase the number of segments, depending on demand.

While traditional taxi companies have struggled since the pandemic, many tech taxi companies have spent millions of dollars to head the market in ride-hailing tech.

“The taxi business is now full of big businesses such as Grab, Be, Gojek, and now Vingroup. Traditional taxi companies will have to focus on improving service quality, and if they are still fragmented as before, they will not be able to compete. In the long run, traditional taxi companies are forced to merge to improve their competitiveness and gain market share,” said Nguyen Cong Hung, chairman of the Hanoi Taxi Association.

Electric vehicles (EVs) replacing petrol-based ones is an inevitable trend in passenger transport, and taxi companies also need to calculate this in their development strategies. The Vietnamese government requires all new taxis put into use after 2030 to run on electricity.

While converting vehicles to use clean fuel to reduce environmental pollution is necessary, Hung added that the process will not be straightforward.

“The electrification of taxis needs mechanisms and policies, as well as a large source of support from the state, otherwise it will be difficult for businesses to have enough resources,” Hung explained. “Each month, an EV will cost nearly VND20 million ($850) for service and depreciation. With hundreds of vehicles to be converted, most businesses find it difficult to access them. In addition, there are other barriers such as charging station infrastructure.”

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