In Ho Chi Minh City, Dat made a deliberate decision to work with Xanh SM, an electric taxi and motorbike service founded by Pham Nhat Vuong, Vietnam’s richest man and chairman of Vingroup. Despite Grab’s dominance in Southeast Asia, Dat was drawn to Xanh SM’s environmentally friendly marketing and Vietnamese roots. He believes that Xanh SM will surpass Grab in popularity in the future due to its cost-saving benefits, eco-friendliness, and local ownership.
Unlike Grab, Xanh SM not only offers ride-hailing services but also rents out vehicles to gig drivers. The company’s mint-hued electric cars and scooters have become a common sight on Vietnam’s streets since its launch in April 2023. However, some analysts question the sustainability of Xanh SM’s growth and Vuong’s strategy of promoting Vinfast, his Vietnamese EV brand, through the platform.
Vinfast has faced challenges, with most of its sales in 2023 coming from other companies owned by Vuong, including Xanh SM. Despite this, Xanh SM has ambitious expansion plans, aiming to become a leading provider of electric mobility solutions in the region. However, the company may face obstacles in international expansion, including high costs and lack of government support outside of Vietnam.
While Xanh SM has gained popularity in Vietnam, some drivers have raised concerns about the quality of the company’s electric scooters and strict policies regarding damages. Additionally, Vinfast has reported significant losses, prompting Vingroup to sell off subsidiaries to raise capital. Despite these challenges, Vuong remains committed to supporting Vinfast’s growth, even at the risk of running out of funds in the future.