Green SM enters Delhi ride-hailing market, faces operational hurdles

The Delhi-NCR ride-hailing market has seen a new entrant as Vietnamese electric mobility company Green SM launched its all-electric taxi service on June 5. The company aims to fill the market gap left by BluSmart, which abruptly ceased operations in the region last year.

Green SM appears to be replicating BluSmart's strategy by offering competitive pricing, clean electric vehicles, and a focus on reliability and customer service. Unlike marketplace models like Uber and Rapido, Green SM operates a vertically integrated system, owning its fleet and employing its drivers directly. The company has also introduced enhanced safety features, including biometric passenger verification and in-cabin camera options.

Green SM is backed by Vietnamese EV manufacturer VinFast, whose vehicles form the company's fleet. This arrangement positions Green SM as a significant institutional buyer for VinFast, creating a ready demand pipeline for the automaker as it scales in India.

Despite a polished initial customer experience, reports suggest Green SM is grappling with challenges akin to those that hampered BluSmart. Drivers have cited issues with the limited range of EVs on a single charge, often restricting them to areas with company-owned charging stations. This lack of extensive charging infrastructure makes completing the required 8-10 hour shifts difficult.

Further challenges include driver compensation. Some drivers have reported initial earning promises of approximately ₹8,000 per week have not consistently materialized. Reports of delayed payments and requests for adjusted incentive structures have also emerged. Green SM has acknowledged these as "temporary operational issues" during the onboarding phase and stated they are working to resolve them.