Vietnamese electric taxi operator Xanh SM has officially launched its Indonesia operations in Jakarta, with 700 drivers currently in operation, as per an announcement on Wednesday.
The company has ambitious plans to deploy 10,000 electric taxis manufactured by VinFast across Indonesia by 2025, said Nguyen Van Thanh, also known as Steve, the Global CEO of GSM, the ride-hailing unit of Vingroup and the operator of Xanh SM taxis.
“After Jakarta, we are considering expansion to Bali, but it all depends on market demand,” Nguyen stated.
During its trial last week, Xanh SM operated over 100 vehicles and recorded 40,000 passengers. “Training drivers to use electric vehicles was a challenge, but it has been a valuable learning experience for us,” Nguyen shared.
He also emphasised the significant impact Xanh SM aims to have on Indonesia’s economy. “We will create around 10,000 sustainable jobs, including well-trained drivers, which will elevate service standards in the country,” he noted.
The company’s driver remuneration system combines daily guaranteed salaries with commissions and bonuses, aligning with Indonesian labour regulations.
To support its EV fleet, Nguyen stated that the company is open to partnering with any EV manufacturer currently in the market. However, as of now, Xanh SM maintains a partnership with its affiliated company, VinFast, to supply the VinFast Limogreen (VF e34) vehicles. In Indonesia, VinFast has marketed EV models such as VF 5, VF e34, VF 6, and VF 7.
To overcome challenges related to charging infrastructure, Xanh SM has adopted a two-pronged strategy. “We are establishing charging stations at our depots, such as those in Limo, Kapuk, and Kemayoran, while also partnering with V-Green, a Vietnamese charging station company,” Nguyen explained.
V-Green is an EV-charging firm founded by VinFast’s founder, Pham Nhat Vuong, and is affiliated with Xanh SM. Recently, V-Green partnered with the Prime Group conglomerate to develop 100,000 charging stations for VinFast EVs in Indonesia over the next three years, with a projected total investment of up to $1.2 billion.
The first phase of this development will include the installation of charging stations in Jakarta, Surabaya, Bali, and surrounding areas, set to begin in January 2025.
In Indonesia, Xanh SM operates under PT XanhSM Green and Smart Mobility Indonesia. The entity was formed in April as a foreign direct investment, according to a regulatory filing which also showed that its shareholders include Singapore-based Bizmetrix Pte. Ltd. The company also lists Nguyen Van Thanh, the global CEO of GSM, as a commissioner.
EV race in Indonesia
Nguyen expressed optimism about attracting new users.
First, Xanh SM’s fleet exclusively features new, 100% electric vehicles that ensure zero emissions, zero noise, and zero odour. Second, service standards are ensured through driver training programmes. Lastly, affordable pricing remains a key component.
“Our services are high-standard, our fares are very reasonable compared with other players,” said Nguyen.
Xanh SM aims to serve both individual and corporate customers through its app and web platforms. “We are committed to serving both B2C and B2B segments, ensuring flexibility and accessibility for all,” he concluded.
Its biggest contender, the established taxi operator Blue Bird initially set fares based on meters but has since transformed into digital operations, offering fixed prices through its app.
Operating as a family business since 1972, Blue Bird dominates Indonesia’s taxi market. According to its Q3 2024 financial report, the company operates a fleet of 23,500 taxis. In addition to taxis, it also offers bus, rental, shuttle, and corporate services.
Blue Bird has also actively transitioned to electric taxis, starting this initiative in 2019. The company relies on vehicles manufactured by BYD to support this shift.
BYD, through PT BYD Motor Indonesia, has partnered with PT Surya Semesta Internusa Tbk to build an EV factory in the Subang Metropolitan area. This factory, spanning 108 hectares, is set to begin construction in January 2025 and aims to start operations by 2026.
Currently, four BYD car models are available in Indonesia: the BYD M6 (MPV segment), BYD Atto 3 (SUV segment), the BYD Dolphin (Hatchback), and the BYD Seal (Sedan).
