Toyota Is Investing USD1 Billion In Grab
The investment is said to be the largest by a carmaker in the ride-hailing sector.
Grab is pulling in the big guns.
The Singapore-based company announced today, 13 June, that it has reached an agreement with Japan's Toyota under which the carmaker will invest USD1 billion in the ride-sharing app.
The investment, which Grab said is the largest ever by an automotive manufacturer in the ride-hailing sector, will see the two companies strengthen on their existing collaboration and create new mobility solutions across the Southeast Asia region, Grab said in a press release.
Through this investment, Grab is hoping to further its range of services including GrabFood and GrabPay to other parts of the region
"As a global leader in the automotive industry, Toyota's investment in Grab is based on their conviction in our leadership in driving the adoption of new mobility solutions and expanding [online-to-offline] mobile services, such as GrabFood and GrabPay, in the region," Ming Maa, president of Grab, said in a statement.
At the moment, Grab operates in 217 cities across eight Southeast Asian countries.
Grab states the investment will allow Toyota to integrate its Toyota Mobility Service Platform, which includes user-based insurance and predictive maintenance, into Grab's fleet of drivers
Toyota vice president Shigeki Tomoyama said, "I am delighted that we are strengthening our collaboration, which utilizes Toyota’s connected technologies, with Grab, Southeast Asia’s leading ride-hailing company. Going forward, together with Grab, we will develop services that are more attractive, safe, and secure for our customers in Southeast Asia."
To help facilitate the partnership, one Toyota executive will be appointed to Grab’s board of directors and a Toyota team member will become an executive in the ride-sharing company.