Green & Smart Mobility (GSM), a Vietnamese taxi firm controlled by billionaire Pham Nhat Vuong, is expanding its ride-hailing operations across Southeast Asia to challenge established players like Grab.

Launched two and a half years ago, GSM, also known as Xanh SM, uses EVs from VinFast and has entered Laos, Indonesia, and the Philippines, with plans to move into India.

In Vietnam, GSM’s market share varies between 35% and 40%, while Grab’s ranges from 32% to 55%.

GSM recently deployed 2,500 vehicles in Manila and plans to invest US$1 billion in the Philippines over three years.

In Indonesia, GSM aims for a fleet of 10,000 EV taxis by year-end, targeting a market dominated by Grab, GoTo Group, and Blue Bird.

Analysts note GSM’s fleet remains much smaller than rivals, which operate millions of vehicles regionally.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Southeast Asia’s ride-hailing market has proven challenging for foreign entrants

GSM’s expansion comes after Uber’s costly retreat from the region, which offers important context for understanding the competitive dynamics.

Uber spent approximately $1 billion annually competing in Southeast Asia before selling its operations to Grab for $3 billion in March 2018 23. This exit consolidated Grab’s market position to around 70% regional market share and demonstrated the significant financial commitment required to compete effectively in these markets 3.

The situation suggests that local knowledge and deep financial resources are essential for success in Southeast Asian ride-hailing, where established players like Grab have built strong network effects and regulatory relationships over nearly a decade of operation.

GSM’s current challenge mirrors Uber’s earlier struggle, entering markets where incumbents already have millions of vehicles in service and established user bases, requiring massive capital deployment to gain meaningful market share 1.

2️⃣ Vertical integration creates strategic advantages in competitive ride-hailing markets

GSM’s business model demonstrates how ride-hailing can serve as a distribution channel for related businesses rather than just a standalone service.

The taxi company contributed 21% of VinFast’s total electric vehicle deliveries in the first quarter, showing how Vuong uses his 95% stake in GSM to create guaranteed demand for his automotive business 1.