Can Green SM Succeed Where BluSmart Failed?

When BluSmart’s cabs suddenly disappeared from the roads of Delhi NCR last year, the region’s ride-hailing market — after years of being a duopoly and briefly seeing meaningful competition — was effectively reset to square one.

In a market dominated by Rapido and Uber, BluSmart earned a loyal customer base by combining competitive pricing with cleaner cabs, reliable service, zero cancellations, and courteous drivers.

The abrupt exit of the EV ride-hailing service left commuters with fewer alternatives, exposing them once again to surge pricing, inconsistent service, and poor ride quality that have long defined India’s ride-hailing market. 

On the other hand, however, BluSmart’s screeching halt left a white space. Observing the market closely was Vietnamese electric mobility company Green SM, which leapt in to fill it.

On June 5, 2026, World Environment Day, the company launched its all-electric taxi service in the Delhi NCR region, claiming the premium electric cab segment that BluSmart once dominated. 

Backed by Vietnamese EV manufacturer VinFast, Green SM runs its own EV cabs with drivers on its payroll. The pricing is also similar to BluSmart.

The similarities with BluSmart are hard to miss. But so are the operational realities. Inc42’s conversations with Green SM drivers suggest the company is grappling with the same challenges that have long made the economics of running an EV fleet difficult. So, what are these operational challenges, and how could they hamper the company’s growth in India? 

Green SM’s India Play Is Bigger Than Ride Hailing

Unlike Uber and Rapido, Green SM does not operate as a marketplace connecting riders with independent drivers who own cabs. Instead, the company follows a vertically integrated model, owning vehicles, recruiting drivers and controlling overall customer experience. 

Before the trip begins, the app asks riders whether they would like the in-cabin camera and microphone to remain active during the journey as an added security measure. The company has also introduced biometric authentication for passengers, allowing frequent users to skip OTP verification altogether. 

Green SM has invested a fortune to make sure that only quality drivers are onboarded. Speaking with Inc42, a driver said that the verification process for drivers extends beyond routine police checks. The company runs a thorough background check before onboarding a driver, positioning Green SM as a premium, safety-first mobility platform, a space BluSmart had successfully carved out before its operations came to a halt. 

But Green SM’s India ambitions extend beyond ride hailing. Its expansion playbook is directly tied to VinFast, the Vietnamese EV manufacturer, which entered India in August last year. Green SM effectively acts as a large institutional buyer for VinFast’s electric vehicles, creating a ready-made demand pipeline as the automaker scales production. 

Green SM is one of the largest buyers of VinFast vehicles globally. At a time when the EV maker is reporting steep losses due to gross margins under pressure, sales to Green SM have become an important revenue stream for VinFast vehicles. India, therefore, represents more than just another international market for Green SM.

Range Anxiety Becomes Operational Friction

For passengers, the experience with Green SM supersedes that of BluSmart’s. The fleet is new, the cabins are clean, and the overall service is noticeably more polished.

However, there have been reports of drivers cancelling scheduled rides. In this, BluSmart stole the show, as its drivers had no option to cancel trips. 

“…. in exceptional circumstances involving safety, technical issues or other unforeseen situations, the platform allows drivers to cancel trips to protect the interests of both customers and drivers,” said Bach Tuan Anh, managing director of Green SM India, in a written response to Inc42’s queries.

Then, Green SM drivers told Inc42 they are currently required to remain active for at least 8-10 hours a day while completing a minimum of four trips. On paper, the target looks manageable. But in reality, a lack of charging infrastructure in the region makes it difficult to ply the vehicle for eight hours straight. 

“The cars are good, but the battery backup isn’t that great. On a full charge, these cars run for 5-6 hrs. When we’re nearing the end of our charge, we try to stick to Gurugram only because there is a company-owned charging station there,” a driver said. 

Drivers are reluctant to use third-party charging stations because they have to pay out of pocket and wait until the end of the month for reimbursement. Green SM’s own charging stations, meanwhile, are free to use. 

Inc42 has learnt that the company is planning to set up a charging station in Delhi’s Saket and Vasant Kunj regions. 

“As our network grows, charging infrastructure will continue to expand in phases, supported by ecosystem partnerships and operational readiness,” Bach Tuan Anh said. 

The Real Test For Green SM Starts Now

Green SM’s early challenges are not limited to a lack of charging infrastructure alone. Drivers’ salary is a challenge, too. Drivers who spoke to Inc42 said they were initially told they could earn around ₹8,000 a week, translating to a monthly payout of ₹32,000. Several drivers now complain that the actual payouts have become inconsistent. 

A group of drivers also complained about delayed payments during the company’s first few weeks of operations, while others demanded a change in the incentive structure.

“As with any new service launch, a limited number of payment delays occurred during the initial onboarding period due to system integration and payment verification processes. These were temporary operational issues and did not reflect any change in our commitment to driver partners. Our teams worked closely with affected drivers to resolve individual cases as quickly as possible,” Bach Tuan Anh said.

Whether these are temporary issues or signs of deeper operational strain remains to be seen. The company has recently entered India, and early execution challenges are only expected. 

Moreover, a mobility business built around delivering a premium customer experience is inherently capital intensive, requiring continuous investment in vehicles, charging infrastructure and driver operations.

Beyond charging infrastructure, industry observers believe Green SM’s biggest challenge will be making the unit economics work. An industry expert told Inc42 that the company will ultimately need to maximise vehicle utilisation to absorb the high fixed costs associated with owning an electric fleet. According to the executive, a driver would ideally need to complete at least eight trips a day with an average ticket size of around ₹400 for both the driver and the company to generate sustainable earnings. 

Green SM has entered India at the right time, filling the void left by BluSmart. But timing alone will not guarantee success. Its long-term prospects will depend on whether it can scale its premium service while solving the operational and economic challenges that have repeatedly tested company-owned EV ride-hailing businesses.

Edited By Shishir Parasher
Creatives: Abhyam Gusai

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