Vietnamese automaker VinFast's subsidiary Green SM launched its all-electric taxi service in Delhi NCR last month, entering the Indian electric ride-hailing market left vacant by BluSmart's exit last year, according to inc42.com. Green SM operates a fully controlled ecosystem, owning its vehicles and employing drivers directly, differing from aggregator models like Uber or Rapido.
Green SM's model involves direct ownership of vehicles and driver employment, allowing it to control the entire service stack from passenger authentication to driver onboarding. This approach aims to provide better service consistency but requires significant capital investment in vehicles, staffing, and operations. The company also serves as a demand engine for VinFast, helping absorb inventory and gather real-world data as VinFast expands in India.
The service has received positive feedback from customers for its cleaner and spacious cars. However, drivers report operational challenges, including enforced eight to ten-hour shifts with a minimum of four daily trips and inconsistent weekly payouts promised at ₹8,000. Analysts estimate that each vehicle needs to complete at least eight trips daily with a ₹400 ticket size, a target that current infrastructure struggles to support, highlighting the difficulties in scaling electric ride-hailing in India.
Green SM's launch marks a significant attempt to fill the gap left by BluSmart in the Indian electric taxi market. VinFast entered India in August last year, and Green SM's operations provide crucial market data and sales volume. The company will continue to navigate operational challenges as it seeks to establish a sustainable electric ride-hailing service in Delhi NCR.