With corporate-grade management and trained drivers, Vinfast’s taxi services can greatly improve the commuting experience
Traditionally, car manufacturers usually focus on their core business rather than venturing into areas such as taxi services. Such a move could lead to various challenges such as operational complexities, lower margins and potential adverse impact on the brand. However, things may be different with EVs, which are relatively easier to maintain and have lower operating costs. VinFast seems to be thinking similarly as it prepares to launch its fully electric taxi services in India.
Competitive pricing with multi-city coverage
To ensure clear differentiation between VinFast’s primary EV brand and its taxi business, VinFast will be launched under the ‘Green SM’ brand. For less’Green and Smart Mobility‘, Green SM clearly states the environmentally friendly approach to taxi services. VinFast will start its taxi operations from Delhi-NCR region.
Initially, about 1,000 electric cabs will become operational in the city. By the end of this year, more cities will be covered, including tech hubs like Bengaluru and Hyderabad. VinFast’s taxi fleet is expected to increase over the next seven months Grow to 15,000 taxis. To ensure easy identification and strong brand recall, all these taxis are expected to be Limo Green 7-seater electric MPVs, the same model that was recently launched in India as the MPV7 at Rs 24.5 lakh ex-sh.
All of these taxis will be finished in an eye-catching bright turquoise colour, helping to establish a distinct identity for Green SM Taxi Services. These will be easy to identify on the roads and will help in increasing confidence among users. With trained drivers, users can expect highly professional services. Vinfast is also ensuring that its taxi services are easily available to the public and not something that only a select few can afford.
Although not official, some reports indicate that VinFast taxi charges could be around Rs 8 per km. This is at par with the rates charged by mainstream cab aggregators like Ola and Uber. What’s even more beneficial is that VinFast Taxis will not charge surge charges or time-based peak-hour charges. This will be of great benefit to frequent taxi drivers.
Good salary package for drivers
With its electric taxi fleet, VinFast is creating an ecosystem that benefits all stakeholders. Drivers can earn between Rs 35,000 to Rs 40,000 per month. There are also likely to be incentive programs and bonuses in place to keep motivation levels high and ensure service quality is maintained.
VinFast will also benefit as these taxis will act as brand ambassadors for the company. By operating its own taxi fleet, Vinfast can further optimize the utilization of its production capacity. In India, Vinfast has a manufacturing plant in Thoothukudi, Tamil Nadu. Its production capacity is 1.5 lakh units per year. The plant serves both domestic and international markets.
Vinfast’s taxi services in India are not their first foray into a new business venture. The company also successfully runs similar taxi services in other countries such as Indonesia, Vietnam, Laos and the Philippines. In its home market Vietnam, VinFast’s taxi services are available in 62 cities. Keeping in mind the current challenges faced by taxi users in India, Vinfast’s professionally managed cab services can prove to be a boon if executed as planned.