Whalesbook
Green SM, Vingroup's electric vehicle fleet division, is set to launch its taxi service in India around mid-June, focusing initially on the Delhi-NCR region. The company's unique turquoise-cyan electric cars, branded with the Green SM logo, will also act as a marketing tool, allowing potential customers to experience VinFast electric vehicles firsthand. Reports suggest that 1,500 to 2,000 Green SM vehicles are already in place in Delhi-NCR for the upcoming launch.
Attracting Drivers with Stable Income
A key element of Green SM's strategy is its driver compensation plan. Drivers will be offered a guaranteed monthly income of about ₹35,000, with the possibility of earning up to ₹50,000 based on their performance. This guaranteed income aims to reduce driver turnover, a common issue in India's ride-hailing industry, which often relies on fluctuating incentive structures.
Vingroup's Broader EV Ambitions in India
This fleet operation is a part of Vingroup's substantial $2 billion commitment to developing its electric vehicle presence in India through its subsidiary, VinFast. VinFast is building a manufacturing plant in Thoothukudi, Tamil Nadu, with an intended capacity of 150,000 vehicles annually. By using its fleet as a direct showcase to potential buyers, including business travelers and urban professionals, Green SM aims to boost brand recognition and sales for VinFast, turning a marketing expense into a revenue-generating venture.
A Managed Fleet Approach
Green SM presents its model as a fully integrated electric fleet operation, ensuring consistent management of vehicles, drivers, service quality, and customer experience. This approach differs from the typical gig-economy model used by other ride-hailing companies. The success of this launch will depend on effective implementation, sustained driver earnings, competitive pricing, and Vingroup's ability to manage the challenges of scaling an electric fleet in India. Driver recruitment efforts are highlighting the benefits of stable earnings, set work hours, health benefits, and life insurance, appealing to drivers seeking job security and professional recognition.