The Rise of Electric Taxis in Vietnam: Unveiling the Reasons Behind Their Growing Popularity

From Taxi Fears to Addiction to Xanh SM’s Electric Fleet

With the introduction of the Xanh SM electric taxi service, more and more Vietnamese customers have found a convenient way to meet their transportation needs.

Juggling a busy work schedule, Anh Long (Ho Chi Minh City) considers taxi rides as an opportunity to rest and catch a quick nap before arriving at his office. “It takes me 30 minutes to get from home to work, and I always manage to sneak in a short sleep in the taxi to recharge my energy,” he shares. “That’s why I need a clean taxi with spacious seats, minimal noise, and, most importantly, a polite driver who understands my needs. This is why I’ve been a loyal customer of Xanh SM for the past year.”

Old and smelly taxis used to be a nightmare for Chi Hoang Phuong (Hanoi) whenever she had to use one. However, since discovering Xanh SM, electric taxis have quickly become her family’s primary means of transportation. “Taxis used to be a scary experience because many of them were in terrible condition, and the smell alone would make me feel sick,” she recalls. “A friend recommended I try Xanh SM’s electric taxis, and I was pleasantly surprised by how clean the cars were and how friendly the drivers were. I felt great after the ride. I’ve had many similar experiences since then, and they’ve all been consistently excellent.”

The advantages of electric taxis, including their smooth and quiet operation without any unpleasant odors or noises, have not only won over customers like Chi Phuong, who used to dread taxi rides, but also countless others across the country.

Some customers even compare Xanh SM’s service to a 5-star hotel experience, giving it top marks in the domestic taxi market due to the exceptional experiences the company provides.

Retaining Customers with Superior Service Quality

Entering a ride-hailing market that was already considered nearly saturated and lacking significant growth opportunities, gaining market share was no easy feat for any business, especially a newcomer like Xanh SM. However, this young company has surprised the industry with its rapid progress.

In the first half of 2024, the Vietnamese electric taxi company achieved a remarkable 32% market penetration rate, securing the second spot in the market and outperforming many established players. The key to their success lies in how they have captivated Vietnamese consumers.

The novelty factor may have sparked initial curiosity among customers, but it is the consistently exceptional experiences and superior service quality that have kept them loyal to the Xanh SM brand.

“I became a die-hard fan of Xanh SM after about a week of trying them out because the quality of their vehicles and services has always been consistent across all my rides,” shares Anh Vu Ngoc Tuan from Thanh Xuan, Hanoi. “Not only in Hanoi but also during my business trips to other provinces and cities, I’ve experienced the same high standards.”

As Vietnam’s first all-electric taxi company, Xanh SM has directly operated in 45 provinces and cities, maintaining uniform standards for both vehicles and drivers: from the greeting upon booking confirmation and boarding to adjusting the temperature and audio inside the vehicle, as well as weekly inspections and maintenance for the cars.

Even as they expanded their partnership with businesses and individual partners operating on the Xanh SM Platform, increasing their presence to 55 provinces, these standards remained consistent and well-maintained.

TH (Tuoitrethudo)