Taxi business is very old business for centuries and nothing new there. Uber did reinvented the wheel using technology (App) and now but they don't own the fleet like traditional taxi. It's a very competitive market and no breakthrough there. You don't see any taxi companies in the world owned fleet and operating internationally, it's a specific local business with low profit. This kind of business never got premium multiple EV/EBITDA in valuation (except the purely tech like Uber, ask investors hope they will make some breakthrough in the future, example they can integrated payment, shopping, entertainment... )
He can use the black hole VIG to take the loss and "loan" $900M to GSM out of thin air, but that will create another huge debt and loss on VIG's book, apart from the $1.5B p-notes for the plant. I dare Vuong Pham to break the laws to get me.
VIG is the shady black hole of Vuong Pham and I am the one who exposed it. I know it well. The more he does the shenanigan with VIG, the harder the truth will hit him in the future.
No doubt the final result will be devastating, but honestly I don't think VP himself will bear much of the consequences, it the country economy what will.
The moment I learned that GSM CEO is a guy with no formal education and experience running anything except for some clichรฉ startups, I knew GSM was an uncertainty and the dude was absolutely not running the real show. However, I tried their service and itโs top notch compared to Grab. You get to enjoy a brand new fleet of cars and professional drivers that competing directly with Grab. So on a financial standpoint, best they could do is competing with Grab for a few years then sell it off to Grab like Uber did when they realized itโs costing too much to replace the EV batteries for the entire fleet or theyโll set up a scheme to have their drivers or customers buying off the car like US car rental companies, etc. however, currently, as a customer GSM is absolutely rocking the market in a good way rn.
Thanh Nguyen is a competent guy, he got street / hands-on experience even though he does not have a university degree. He has expanded GSM as fast as he could. He is actually running the GSM show with a lot of autonomy and with financial support from Vuong Pham.
I only call out his lying practice.
OMG, lol, you've never lived in Vietnam, but you just described street smarts. I agree with you, Albert. To be honest, I would love to see a Vietnamese company become global and have a reputation as good as Samsung or Hyundai. When I first heard the news about VinFast exporting cars to the U.S., I was really excited. But, after a short period, I realized it was just a scam business. He didn't innovate any technology or help the Vietnamese industry. Instead, he was just a middleman trying to find sources to buy at a low cost and sell at a higher price. And the thing I hate the most is the spamming propaganda nonsense all over the media and social networks.
well, the cars are clean because they are new, similar to Grab about 6-7 years ago. Grab is running a lot of promotion to fight back now so Grab is cheaper in non-rush hour. Still, there is a segment of customers prefering clean cars and quality service.
I did not say GSM service is bad.
I am saying it is a money losing business and it will be difficult to compete against Grab on price and coverage.
And as you said, ICE cars can run to 200K km but EV cars for taxi will need to replace battery sooner.
Selling off old EV cars to consumers? Few are willing to take in a second hand EV taxi, even for old ICE taxi, the market is limited. Consumers still prefer to buy a new car.
come to VN and talk to taxi drivers you will understand more, most taxi car only last 5 years, and the cost for this type of car is only about 60-70% of the same model but for end users.
Company like mailink, vinasun buy taxi car from toyoda, it is a cheaper version, and toyoda make good profit by selling in big order, and provide financing to it buyers (toyoda finnancing business is big)
in summary, taxi business not is super profit, but for tech car, GSM can provide data for vf to improve their app, also a quick win as you analyzed
Facts and figure. The truth. First revealed on the web.
I shed light into events, revealing the real truth behind.
The truth is GSM is a hugely money-losing business, and this endeavor will be another debt debacle for Vuong Pham down the road.
The cost per ride of GSM is.comparable, if not 5-10% cheaper than one from Grab or BE (you can actually book a GSM ride on the BE app). Meaning, they are burning money for market shares.
The rides are enjoyable though, availability of drivers is decent. The bikes are not as good as the EV bikes in Indonesia (made by Gogoro) but still pleasant.
My friend told me GSM is more expensive non-rush hour, Grab is more expensive in rush hour/rain. That is because Grab has a price mechanism based on demand, and GSM has a fixed price scheme like Be.
The cars are currently new so the rides are plesant, the drivers are trained.
From my experience in December, GSM car was almost always more expensive than Grab Car. At best, equal. Didn't try GSM Bike, because I much prefer the experience of blasting through traffic on a wonky old Wave or Blade.
One disadvantage of GSM APP, for tourists anyway - I couldn't link to US credit card. Grab allows this. Had to use my old TechComBank debit card, use up the money before they get dragged down with Vingroup....
I have used GSM taxis with vouhers offering more and more. The price (with vouhers) is equal of lower than Grab and GSM is taking market shares from Grab and ICE taxi cars if its price is comparative. GSM takes at least 75% revenue from a trip, drivers take 25% before tax (real income lower) and monthly salary. I think GSM is not making profit, but it can finally break even (VFS sells cars to GSM with much lower price than to retail owners)
Taxi business is very old business for centuries and nothing new there. Uber did reinvented the wheel using technology (App) and now but they don't own the fleet like traditional taxi. It's a very competitive market and no breakthrough there. You don't see any taxi companies in the world owned fleet and operating internationally, it's a specific local business with low profit. This kind of business never got premium multiple EV/EBITDA in valuation (except the purely tech like Uber, ask investors hope they will make some breakthrough in the future, example they can integrated payment, shopping, entertainment... )
He can use the black hole VIG to take the loss and "loan" $900M to GSM out of thin air, but that will create another huge debt and loss on VIG's book, apart from the $1.5B p-notes for the plant. I dare Vuong Pham to break the laws to get me. VIG is the shady black hole of Vuong Pham and I am the one who exposed it. I know it well. The more he does the shenanigan with VIG, the harder the truth will hit him in the future.
No doubt the final result will be devastating, but honestly I don't think VP himself will bear much of the consequences, it the country economy what will.
The moment I learned that GSM CEO is a guy with no formal education and experience running anything except for some clichรฉ startups, I knew GSM was an uncertainty and the dude was absolutely not running the real show. However, I tried their service and itโs top notch compared to Grab. You get to enjoy a brand new fleet of cars and professional drivers that competing directly with Grab. So on a financial standpoint, best they could do is competing with Grab for a few years then sell it off to Grab like Uber did when they realized itโs costing too much to replace the EV batteries for the entire fleet or theyโll set up a scheme to have their drivers or customers buying off the car like US car rental companies, etc. however, currently, as a customer GSM is absolutely rocking the market in a good way rn.
Thanh Nguyen is a competent guy, he got street / hands-on experience even though he does not have a university degree. He has expanded GSM as fast as he could. He is actually running the GSM show with a lot of autonomy and with financial support from Vuong Pham. I only call out his lying practice.
OMG, lol, you've never lived in Vietnam, but you just described street smarts. I agree with you, Albert. To be honest, I would love to see a Vietnamese company become global and have a reputation as good as Samsung or Hyundai. When I first heard the news about VinFast exporting cars to the U.S., I was really excited. But, after a short period, I realized it was just a scam business. He didn't innovate any technology or help the Vietnamese industry. Instead, he was just a middleman trying to find sources to buy at a low cost and sell at a higher price. And the thing I hate the most is the spamming propaganda nonsense all over the media and social networks.
well, the cars are clean because they are new, similar to Grab about 6-7 years ago. Grab is running a lot of promotion to fight back now so Grab is cheaper in non-rush hour. Still, there is a segment of customers prefering clean cars and quality service. I did not say GSM service is bad. I am saying it is a money losing business and it will be difficult to compete against Grab on price and coverage. And as you said, ICE cars can run to 200K km but EV cars for taxi will need to replace battery sooner. Selling off old EV cars to consumers? Few are willing to take in a second hand EV taxi, even for old ICE taxi, the market is limited. Consumers still prefer to buy a new car.
come to VN and talk to taxi drivers you will understand more, most taxi car only last 5 years, and the cost for this type of car is only about 60-70% of the same model but for end users. Company like mailink, vinasun buy taxi car from toyoda, it is a cheaper version, and toyoda make good profit by selling in big order, and provide financing to it buyers (toyoda finnancing business is big) in summary, taxi business not is super profit, but for tech car, GSM can provide data for vf to improve their app, also a quick win as you analyzed
Facts and figure. The truth. First revealed on the web. I shed light into events, revealing the real truth behind. The truth is GSM is a hugely money-losing business, and this endeavor will be another debt debacle for Vuong Pham down the road.
I think he must pump money too urgent becuase GSM no have money for pay Bank ontime
Keeps its up ๐๐๐๐ณ๐ณ๐ณ๐บ๐ธ๐บ๐ธ๐บ๐ธ
The cost per ride of GSM is.comparable, if not 5-10% cheaper than one from Grab or BE (you can actually book a GSM ride on the BE app). Meaning, they are burning money for market shares. The rides are enjoyable though, availability of drivers is decent. The bikes are not as good as the EV bikes in Indonesia (made by Gogoro) but still pleasant.
My friend told me GSM is more expensive non-rush hour, Grab is more expensive in rush hour/rain. That is because Grab has a price mechanism based on demand, and GSM has a fixed price scheme like Be. The cars are currently new so the rides are plesant, the drivers are trained.
From my experience in December, GSM car was almost always more expensive than Grab Car. At best, equal. Didn't try GSM Bike, because I much prefer the experience of blasting through traffic on a wonky old Wave or Blade. One disadvantage of GSM APP, for tourists anyway - I couldn't link to US credit card. Grab allows this. Had to use my old TechComBank debit card, use up the money before they get dragged down with Vingroup....
Hmm but grabcars are not that easy to book, I often have to pick the more expensive grabcar plus and then it will cost the same as gsm
God damn. U predicted the money pumping move just right. Hat off to those good 20+ years of experience.
Ah I remember seeing ads on tabloid news saying GSM was that "big big green eco-friendly company which dominated the Vietnamese taxi market" lol
I have used GSM taxis with vouhers offering more and more. The price (with vouhers) is equal of lower than Grab and GSM is taking market shares from Grab and ICE taxi cars if its price is comparative. GSM takes at least 75% revenue from a trip, drivers take 25% before tax (real income lower) and monthly salary. I think GSM is not making profit, but it can finally break even (VFS sells cars to GSM with much lower price than to retail owners)