Grab Holdings Inc. (Grab), Southeast Asia’s leading ride-hailing firm, announced today it has reached an agreement with Toyota Motor Corporation (Toyota) under which Toyota will invest US$1 billion in Grab, as a lead investor in the company’s ongoing financing round.
As part of the agreement, Grab and Toyota will strengthen and expand their existing collaboration in the area of connected cars, to drive the adoption of new mobility solutions across Southeast Asia.
The transaction is subject to the satisfaction of certain closing conditions.
This investment by Toyota is the largest-ever by an automotive manufacturer in the global ride-hailing sector, and brings Grab closer to achieving its vision of becoming a one-stop mobility platform in Southeast Asia.
Grab plans to work with partners to create a more efficient transport network that will ease traffic congestion in Southeast Asia’s megacities, make mobility accessible for all and provide driver-partners with increased income opportunities for them to move up the economic ladder.
Grab said the investment allows Grab to further expand its range of services, such as GrabFood and GrabPay, deeper into the region. Grab operates in 217 cities across eight Southeast Asian countries and offers users safe and affordable transport, food and package delivery, mobile payments and financial services through its Grab mobile app.
“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 O2O mobile services, such as GrabFood and GrabPay, in the region,” Ming Maa, President of Grab, said.
Grab will work with Toyota on how connected car services on the Toyota Mobility Service Platform (MSPF) – such as user-based insurance, financing program and predictive maintenance – could enrich the Grab experience for drivers on the Grab platform.
Grab and Toyota will roll-out connected car services, such as telematics-based insurance, which may reduce the cost of insurance premiums for safer Grab drivers.