Sep 16, 2024Enterprise

GSM And Mai Linh Group Unite Ride-Hailing Platforms and Traditional Taxis

The Mai Linh - GSM partnership to establish Vietnam's largest chain of auto repair and maintenance service workshops is seen as a surprising move between the two competitors in the market.
Phuong Nguyen
Source: Shutterstock

Source: Shutterstock

Vietnam’s automotive market is now among the fastest-growing in Southeast Asia. While still seen as a big-ticket item, cars are increasingly crowding the streets of Vietnamese cities, emerging as one of the main modes of transportation alongside motorcycles for many urban residents.

In such a context, the recent partnership between Green and Smart Mobility (GSM) and Mai Linh Group to establish Vietnam’s largest car repair service chain called “Green Mekong SM” has signaled a new era of integrated automotive solutions that blend traditional expertise with cutting-edge technology.

Furthermore, this has marked an important milestone for Mai Linh - a traditional taxi player that has been paying much effort to restructure and transform into a tech-based firm, aiming to compete with rivals in a fierce competition among modern ride-hailing services such as Grab or Be.

A Transformative Shift In Vietnam’s Automotive Service Industry

GSM officially began operating the first pure electric taxi service in Vietnam - GSM Taxi. The event pioneered a new era of taxis: smart, pollutant and noise-free, and environmentally friendly. On the other hand, Mai Linh Group, renowned for its extensive network and operational excellence in the taxi industry, brings decades of experience and a diverse customer base.

The Green MeKong SM joint venture will provide repair services for both traditional gasoline vehicles and modern electric vehicles (EVs), assisting businesses in improving service quality and reducing maintenance and operating costs.

This workshop chain will be available in 99 locations by the end of 2025, starting with the conversion of 39 existing Green MeKong repair workshops - Me Linh Group’s current maintenance service - to the new model. In particular, this workshop network will operate in parallel with 80 VinFast service workshops, ensuring fast and efficient service for customers nationwide.

By integrating GSM’s technological capabilities with Mai Linh’s expansive reach, the partnership seeks to set new standards in automotive care, ensuring that vehicle owners across Vietnam have access to top-tier services.

Besides, this cooperation will not only promote the Vietnamese automobile industry but also accelerate the green transition, bringing long-term benefits to the environment and the economy. This large-scale repair workshop network will become an indispensable part of the EVs and modern transport ecosystem in Vietnam.

Mai Linh’s Revival After The Wave Of Ride-hailing Apps

The increasing popularity of ride-hailing services has transformed the transportation industry in Vietnam, providing consumers with convenient, tech-based alternatives to traditional taxis. Consequently, these platforms quickly gained traction, challenging players such as Mai Linh Group and Vinasun by attracting a substantial customer base with their ease of use, competitive pricing, and digital convenience.

Mai Linh Group, with its extensive fleet and deep-rooted presence in the Vietnamese market, found itself at a crossroads. To maintain its leadership position and remain relevant in an increasingly digital marketplace, the group recognized the need for innovation and strategic partnerships. Therefore, this alliance can be seen as a turning point for Mai Linh Group to get back to the stage and compete against modern taxi hailing competitors.

Strategic Collaborations And Expansions

As Vietnamese people increasingly lead a “green” lifestyle, the emergence of EVs is expected to significantly thrive in the future, enabling electric cars ride-hailing service like GSM to increase its market share in the future.

Recognizing the potential of GSM in meeting the modern demands of consumers, Mai Linh has strategically collaborated with GSM not only to provide innovations to customers but also take it as a foundation for its return after years of loss.

Previously, Be and other local taxis services have chosen GSM as a strategic partner that leads the sustainable trend in consumption behavior in the ride-hailing sector among Vietnamese customers. They have also boldly invested in EVs to open services when they see a good opportunity following the roadmap of 100% replacement taxi vehicles.


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