Vietnamese electric ride-hailing service Xanh SM under Green and Smart Mobility (GSM), which is 95% owned by Pham Nhat Vuong, the billionaire chairman of local conglomerate Vingroup, has forayed into the food delivery market with the launch of Xanh SM Ngon.
After a trial period, Xanh SM is set to launch its new food delivery platform, Xanh SM Ngon, in Hanoi. This marks a significant expansion for the company within its green transportation ecosystem.
Xanh SM Ngon aims to partner with restaurants, eateries, and specialty food shops operating in Hanoi. According to the company, the platform offers free registration, quick application approval, flexible service fees, and professional delivery personnel. Additionally, restaurants have the option to handle deliveries themselves or integrate with the company’s logistics system.
Previously, GSM’s CEO Nguyen Van Thanh had expressed on his page that the firm was considering testing the food delivery segment, viewing it as a “perfect piece to expand the ecosystem of green transportation and consumer services.”
The launching of Xanh SM Ngon comes at a time when the local market has witnessed the departure of several food delivery services, including GoFood (Gojek) and Baemin.
Last year, Indonesia-listed tech giant GoTo Group decided to terminate its Vietnamese operations on Sep 16, 2024. The move was part of the company’s plan to focus on areas and geographies with higher sustainable growth potential to help GoTo meet its 2024 adjusted EBITDA breakeven target.
Earlier, German food delivery giant Delivery Hero shut down operations of Baemin Vietnam, its joint venture with South Korean food delivery giant Woowa Brothers.
“Delivery Hero is closing down its Baemin Vietnam operations by the end of the year, and our Baemin app will be taken down from December 8, 2023,” according to an internal email to employees accessed by DealStreetAsia.
Southeast Asia’s total food delivery spend on platforms grew 13% YoY to reach $19.3 billion in 2024, marking a significant acceleration from the 5% growth observed in 2023. Vietnam and Indonesia were the fastest-growing markets, with gross merchandise value (GMV) growth of 26% and 18% respectively, while many other markets also registered double-digit growth, according to Momentum Work’s fifth annual “Food Delivery Platforms in Southeast Asia” report.
In 2024, Vietnam’s food delivery GMV reached $1.8 billion. Grab Food dominates the space in the country with a 48% market share, while Shopee Food and Be Food account for 47% and 4% respectively.
