Toyota to invest $1 billion in Southeast Asian ride-hailing firm Grab

Lloyd Doyle
June 13, 2018

Ma estimated that Grab will reach over US$1 billion in revenue this year, as its users exceed 100 million in the region. The carmaker first invested an undisclosed amount in Grab in August a year ago, after it invested in US-based Uber in 2016 in a partnership for a financing programme that allowed Uber drivers to lease vehicles from Toyota and drive for Uber to cover the payments.

Toyota's trading arm invested an undisclosed sum in Grab previous year.

Japan's SoftBank Group Corp last month announced it would invest $2.25 billion in the Cruise autonomous vehicle unit of General Motors Co, while Fiat Chrysler Automobiles NV and Jaguar Land Rover Automotive PLC have agreed to supply vehicles for Alphabet Inc's self-driving auto subsidiary Waymo.

The two companies will look for future collaborations aimed to achieve more-efficient ride-hailing businesses and for developing future mobility service solutions and MaaS vehicles. It raised $2.5 billion in its last round in July, resulting in a reported value of $6 billion.

Toyota announced today that it has concluded an agreement with ride-sharing app company Grab to strengthen their existing partnership and expand collaboration in Southeast Asia to drive further advances in Mobility as a Service (MaaS).

A man walks past a Grab office in Singapore March 26, 2018.


"We will work with partners like Toyota to continue to transform transportation in Southeast Asia", Grab said in an email.

The $1 billion investment is part of a broader fundraising round by Grab, which said it will use the money to further expand its food delivery service and mobile payment platform across the region. "We want to be the one-stop mobility platform for users".

"Going forward, together with Grab, we will develop services that are more attractive, safe and secure for our customers in Southeast Asia", said Toyota executive vice president Shigeki Tomoyama in a statement.

Toyota said it aimed to offer financing, insurance and maintenance services to drivers based on data collected through recorder devices already installed in some Grab vehicles.

One Toyota executive will be appointed to Grab's board of directors and a dedicated Toyota team member will be seconded to Grab as an executive officer. Grab recently took over Uber's Southeast Asia operations after years of competition, and is now going head-to-head in Indonesia with rival Go-jek. In 2016, General Motors invested $500 million in Lyft, Volkswagen pumped $300 million into Gett, and Honda invested an undisclosed amount in Grab.

Grab is in eight nations in the region, including Malaysia, Singapore and Indonesia.

Other reports by Iphone Fresh

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