Grab, Uber's rival in Southeast Asia, pulls in strategic investment from Hyundai

Lloyd Doyle
January 12, 2018

South Korean carmaker Hyundai Motor Company is the latest to jump into the ride-hailing market through an investment and strategic agreement with Singapore-based Grab Taxi Holdings Pte. Ltd.

Hyundai Motor said on January 11 it has invested in the Southeast Asian ride-hailing firm Grab for a possible business partnership.

"Hyundai Motor will continually search for cooperation with car-sharing service providers armed with world-class technology to lead the global sharing economy markets".

Following Hyundai's investment in Grab, the two companies will look at ways to develop and provide innovative services to customers in Southeast Asia.

The Hyundai tie-up is part of Grab's latest financing round that raised $2.5 billion and included Chinese peer Didi Chuxing, Japan's SoftBank Group Corp and Toyota Tsusho, a Grab spokeswoman said.

This latest deal for Hyundai follows just a day or two after the South Korean vehicle maker made some key announcements at the annual CES conference in Las Vegas.

Hyundai shares ended the overnight Asian session lower, as the South Korean auto maker announced a partnership with on demand transport firm, Grab.

Focusing on its "open innovation" spirit, Hyundai has been bolstering its efforts to transform people's lives with disruptive technologies and services that materialise its visions for future mobility - clean, connected and freedom in mobility.

Hyundai has been enhancing its mobility services in world's major locations as it is committed to offer smarter value to customers to cope with rapidly-shifting market paradigm in automotive industry. This will include the development of a new mobility service platform that will use Hyundai's eco-friendly models. The Grab app has been downloaded onto over 77m mobile devices, giving passengers access to the region's largest land transportation fleet comprising over 2.3m drivers.

The automaker does not have a vehicle manufacturing factory in Southeast Asia, although it has some pure assembly operations in Indonesia and Vietnam where cars are made from "knock-down" kits comprised of major component groups.

Uber rival Grab, is now operating in eight south east Asian countries.

Other reports by Iphone Fresh

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