Vingroup to increase capital of EV taxi subsidiary GSM

By Minh Son   April 3, 2024 | 12:36 am PT
Vingroup to increase capital of EV taxi subsidiary GSM
Taxis operated by GSM's ride-hailing app Xanh SM. Photo courtesy of GSM
Conglomerage Vingroup’s board of directors has approved a proposal to hike the chartercapital of electric taxi subsidiary GSM by no more than 5% this year.

Established last March, GSM’s capital has more than tripled since to VND9.66 trillion (US$386.7 million).

It reported revenues of VND20.1 trillion last year. In its 2023 half-yearly report, VinFast said GSM is its largest customer, having bought 7,100 of its cars.

GSM has an agreement to buy another 30,000 cars besides 200,000 electric scooters from VinFast.

Last year GSM's Xanh SM ride-hailing app accounted for 18.17% of the market in Vietnam, trailing only Grab (56%).

Xanh SM’s market share was double that of third-placed Be Group (9.21%), and thrice that of Gojek in fourth place (5.87%).

Since the end of last year GSM has been expanding to foreign markets starting with Laos.

It plans to launch in nine countries by 2025.

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