Singapore-based ride-hailing firm Grab just announced today that Toyota Motor will invest US$1 billion into the company as a lead investor in Grab’s ongoing financing round.
This deal will apparently raise Grab’s value from US$6 billion to US$10 billion, according to TechCrunch.
According to Grab, this investment is by far the largest made by an automative manufacturer in the ride-hailing sector.
Prior to this, Toyota has also invested in Grab (and its former rival Uber).
This particular investment by Toyota will see the two companies expand on their existing partnership and explore new mobility strategies across Southeast Asia.
Specifically, it aims to let Grab expand its range of online-to-offline services such as food delivery and electronic payments in the region.
Currently, Grab operates in 217 cities across eight Southeast Asian countries, offering transport, food delivery, mobile payments, and financial services through its mobile app.
“As a global leader in the automative 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,” said Ming Maa, Grab’s president.
Expect Connected Car Services
As for Toyota, this investment will allow it to further integrate connected car services – such as user-based insurance, financing program, and predictive maintenance – with Grab.
This could act as an incentive for drivers to drive more safely to enjoy lower insurance premiums.
In line with this investment move, an executive from Toyota will also be appointed to join Grab’s board of directors; and another Toyota team member will be made an executive officer of Grab.
“Going forward, together with Grab, we will develop services that are more attractive, safe and secure for our customers in Southeast Asia,” said Shigeki Tomoyama, Toyota Executive Vice President and President of Toyota’s in-house Connected Car Company.
Featured Image Credit: Grab