Xanh SM Goes After Grab

Pham Nhat Vuong is shaking things up in Vietnam’s ride-hailing scene. Backed by Vingroup, his company, Xanh SM, is looking to make a mark in a market dominated by Grab. The main question, though, is whether Xanh SM can thrive where others haven’t been sustainable.

Grab has been in Vietnam for a decade, and it’s not slowing down. Alejandro Osorio, who helms Grab Vietnam, mentions that the company is at its peak with a large user base and millions of transactions each month. Grab’s success isn’t just about ride-hailing; they’ve expanded into food delivery, shopping, and more, keeping users loyal and their market share intact.

Expectations for Vietnam's ride-hailing market are high. It pulled in $3 billion in revenue last year and is expected to hit $10 billion by 2030. But with players like ShopeeFood and Be stepping up, challenges for Grab are intensifying. And with Xanh SM entering the fray, backed by Vietnam’s wealthiest individual, the competitive stakes are even higher.

In short, while Xanh SM aims for a piece of the pie, Grab’s established presence and varied offerings make it a formidable competitor in Vietnam’s bustling ride-hailing industry.