VinFast Bets on LA Taxis to Save Stalling U.S. Car Sales

VinFast is flooding Los Angeles streets with its own cars because Americans are not buying them at dealerships. On Oct. 13, the Vietnamese automaker’s ride-hailing subsidiary, Green SM, activated a fleet of VF 8 electric SUVs for paid passenger service across the metropolitan area. It is the ninth country where the mobility brand operates, but the first in North America.

The pivot follows months of deteriorating retail numbers. VinFast slashed U.S. prices earlier this year after initial deliveries failed to gain traction against entrenched competitors like Tesla and Hyundai. Shifting inventory into a subsidized taxi network converts stagnant showroom stock into rolling billboards. Passengers who might never walk onto a dealer lot now sit inside a VF 8 during their daily commute or airport run.

Riders book through an app, call a hotline, or flag down a driver on the street. New users get half off their first five trips. A separate membership tier hands out monthly fare vouchers to lock in repeat riders.

Operating a commercial transit network carries risks that have nothing to do with manufacturing tolerances. California requires specific permits for transportation network companies, a regulatory thicket that has tripped up established players. Uber spent years fighting local authorities before stabilizing its West Coast operations. Green SM must build charging infrastructure, manage driver turnover, and maintain vehicles under heavy urban use while simultaneously trying to convince the public that the underlying product is worth $40,000 or more.

The financial strain is measurable. Parent company Vingroup has burned billions expanding VinFast globally since its 2022 U.S. debut. The automaker opened a factory site in Chatham County, North Carolina, though construction timelines have repeatedly shifted. Putting those same vehicles to work as taxis generates immediate revenue streams that pure retail sales currently cannot match in the American market.

Geely attempted a similar maneuver when it acquired London’s black cab manufacturer, pivoting the historic brand toward electric commercial fleets before pushing passenger cars into Europe. VinFast is running that playbook in reverse order, starting with consumer vehicles and retreating into commercial transport when retail demand stalled.

Green SM currently relies entirely on the midsize VF 8. The company manufactures a smaller hatchback, the VF 3, which industry analysts have flagged as better suited for dense gridlock. No timeline exists for importing that model to California dispatch centers.