Electric taxis spark price war in Vietnam as operators cut fares by half

By AJP Posted : October 31, 2024, 13:56 Updated : October 31, 2024, 13:56
This photo shows a taxi. Getty Images Bank
SEOUL, October 31 (AJP) - Vietnamese taxi operators Mai Linh and Taxi 123 have launched electric vehicle services using VinFast's VF 3 model in northern provinces, offering base fares of 9,000 dong ($0.37) and per-kilometer rates of 6,000 dong, roughly half the price of traditional gasoline-powered taxis.

The competitive pricing stems from significantly lower operating costs, with electric charging expenses at 300-400 dong per kilometer, compared to 2,000 dong for conventional fuel, despite longer charging times.

Green SM (GSM), Viet Nam's first electric taxi service launched in April 2022 by VinFast founder Pham Nhat Vuong, has expanded to 45 provinces with over 30,000 vehicles, while traditional operator Vinasun reported a 21 percent drop in revenue and 36 percent decline in net profit during the third quarter.

In response to growing competition, Vinasun plans to introduce 700-1,000 hybrid taxis to reduce fuel costs by up to 50 percent, as electric vehicles gain popularity among passengers for their affordability and eco-friendly features.