Vietnam’s electric ride-hailing app, Xanh SM, is making waves in the industry with its environmentally friendly approach and homegrown status. Founded by Pham Nhat Vuong, Vietnam’s richest man, Xanh SM offers electric taxis and motorbikes as an alternative to traditional ride-hailing services like Grab. The company’s distinctive mint-hued vehicles have become a common sight on the streets of Vietnam.
Despite Xanh SM’s success, some analysts question the company’s growth potential, especially in light of its ties to Vinfast, Vuong’s EV brand. Vinfast has faced challenges, including losses and delayed factory openings. However, Xanh SM’s focus on electric mobility aligns with consumer trends towards more sustainable transportation options.
Xanh SM’s expansion plans include entering neighboring countries and becoming a major provider of electric mobility solutions in the region by 2025. However, the company may face challenges in international markets and competition from other affordable EV brands like China’s BYD.
While Xanh SM continues to grow, Vuong’s commitment to Vinfast and its success remains steadfast, despite financial struggles. As the EV market evolves and competition intensifies, the future of both Xanh SM and Vinfast will depend on their ability to adapt to changing consumer preferences and industry dynamics.
Overall, Xanh SM’s rise as a popular ride-hailing option in Vietnam underscores the growing demand for electric mobility solutions and highlights the country’s push towards sustainable transportation alternatives.
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