News Reader

Honda Is Now In Bed With Grab, Announces "Strategic Investment" In The Ride-Hailing Giant

Ride-hailing giant Grab has just announced that it has signed a memorandum of understanding (MOU) with carmaker Honda, with the intentions to collaborate on motorbike-hailing services.

According to its press release, the partnership will see both parties “[collaborating] on various initiatives to enhance benefits for GrabBike drivers and riders in all countries where GrabBike operates”.

GrabBike currently operates in Indonesia and Vietnam, where motorbikes are popular means of transport among locals.

As part of the partnership, Honda has also “made a strategic investment in Grab”.

No details on the amount has been revealed, but President of Grab, Ming Maa, has said that the investment is “a part of the $750 million funding announced in September”.

With a mutual aim to “work together to address Southeast Asia’s toughest urban transportation challenges”, both sides will “collaborate on driver education programs to promote motorbike safety, efforts to reduce traffic and environmental congestion in urban areas through ride share and other technological advancements”.

Said Ming Maa, “We welcome Honda as a shareholder and key partner on innovative mobility solutions over the long term as we continue to drive Southeast Asia forward.”

Shinji Aoyama, Operating Officer and Director of Honda, also added, “In the midst of the dramatic structural change of the mobility industry, the ‘sharing economy’ that is rapidly expanding all around the world has great potential to broaden the concept of mobility itself. For the collaboration with Grab, we will discuss how we can offer safer and more convenient products and services for our shared goal of resolving issues and challenges facing society in Southeast Asia.”

Full details of the partnership are still in the works, said Ming Maa to Reuters, but he revealed that “one prong would obviously include selling Honda motorbikes within the region.”

“We would welcome expanding the partnership to four-wheeled (vehicles).”

Ming Maa also unveiled that the company is also in talks with “other vehicle manufacturers for partnerships that will help reduce traffic and increase safety”.

The partnership with Honda seems like just a hint of things to come from the ride-hailing company, so watch this space for further developments.

Featured Image Credit: Oi Vietnam

Subscribe to Vulcan Post Newsletter

Stay updated with our weekly curated news and updates.