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

This deal will apparently raise Grab's value from US$6 billion to US$10 billion, according to TechCrunch.

The automaker on Wednesday said by deepening the partnership, it hoped to achieve connectivity for Grab's rental auto fleet across Southeast Asia and offer financing, insurance and maintenance services to drivers based on data collected on its platform.

Grab, the ride-hailing firm that acquired Uber's Southeast Asia business earlier this year, is raising a new round of funding and it just announced that it will be led by Toyota, which is committing $1 billion in capital.

A 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, the ride-hailing firm said.

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

This represents the largest ever investment by a vehicle manufacturer in the ride-hailing scene.

The deal comes as the auto industry faces a spike in the need for technological prowess with the advent of features such as autonomous driving, while app makers offer passengers the option to forgo vehicle purchases by connecting them with drivers.

General Motors Co has invested in US ride services firm Lyft, whose rival Uber Technologies Inc [UBER.UL] is also backed by Toyota.

Grab added that the investment will allow Grab to further expand its range of online-to-offline services, such as GrabFood and GrabPay, deeper into the region. The recorder, developed by Toyota for corporate fleets, has been installed in 100 Grab rental cars. 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. Toyota said the Singapore-based startup has big growth potential in a region that is home to around 600 million people. 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, the world's most valuable carmaker with a market capitalization of about $221 billion, has sought partnerships with tech companies in a bet that data will be a key part of its future. This strong partnership will enable us to become the one-stop mobility platform in Southeast Asia.

Other Grab investors include Japan's Honda Motor Co Ltd, South Korea's Hyundai Motor Co and Chinese ride-hailing firm Didi Chuxing.

Last month, Indonesian ride-hailing and online payment firm Go-Jek said it would enter Vietnam, Thailand, Singapore and the Philippines in the next few months, investing $500 million in its global push. It invested an undisclosed sum in the USA company in 2016.

(Copyright © 2015. All Rights Reserved.)
 
Recommended

Local business owner fears effects of net neutrality repeal
But net neutrality remains alive and well in Washington , thanks to a bi-partisan bill that was signed into law earlier this year. As of today, Obama-era regulations were rolled back, getting rid of what's known as net-neutrality.

Trump says everyone was actually very friendly in G7 viral photo
Kudlow said the president won't "let a Canadian prime minister push him around". The French presidency had earlier condemned "fits of anger".

How to dress like Meghan Markle this summer
The parade marks the official birthday of the Sovereign, even though the Queen's actual birthday is on April 21st. Since becoming a member of the family, Meghan Markle has set about dragging the Royals into the 21st century.

Wesley Bryan Round 4 Recap at 2018 FedEx St. Jude Classic
Open, Johnson continued his excellent form with a five-under-par 65 on a scorching day at TPC Southwind in Memphis , Tennessee. Holmes accomplished on holes 2 and 3 on Friday with a hole out from 115 yards at 2 and an 8-foot putt on No. 3.

Priyanka Chopra and Nick Jonas Making It Official???
Jonas, 25, was pictured arm-in-arm with Chopra, 35, as they arrived for his cousin's wedding in Atlantic City on Saturday. The youngest Jonas looked charming in a well-tailored suit while Priyanka stole the show with a gold silk wrap dress.

Kate Middleton Endears Herself To The Public By Wearing Affordable Clothing
Images of four-year-old Prince George playing with a toy gun on Sunday caused outrage on social media. Princess Charlotte had a great fall but Kate Middleton saved the day.

The United States, Mexico And Canada Will Host The 2026 World Cup
President Donald Trump, who combined support for the bid with a veiled threat to those that planned to vote for competing offers. Morocco's bid promised $5 billion in profit, but admitted needing to spend $16 billion on building stadiums and infrastructure.

Trump's ZTE deal challenged by Senate
The Shenzhen-based company appointed Shen Nan to lead the team, with two assistants, according to an internal memo seen by the ´╗┐South China Morning Post .

Britain's Dixons Carphone discovers unauthorized data access
The retailer added that 5.8 million of the compromised cards are protected by chip and pin number combinations. The breach was now being investigated by police, it said, while regulators had also been informed.

Australia says end to South Korea-US war games not a certainty
The DPRK holds off on any new nuclear and missile tests while the US and South Korea stop the "war games" (Trump's terminology). President Donald Trump and North Korean leader Kim Jong Un at the Capella Hotel on Singapore's Sentosa Island.

Sanford's concession in 1st District ends era for SC's 'comeback kid'
On the Republican side, Tarkanian (who is now running for the House instead of the Senate) will face off against state Sen. In turn, Arrington sought to cast the three-term congressman as a traitor who was opposed to the president's agenda.

Brexit: House of Lords EU Withdrawal Bill amendment voted down by MPs
May's been resisting the demand because she doesn't want her hands to be tied during the talks. "There is no inconsistency here". Her fellow Conservative backbencher Stephen Hammond said: "Parliament must be able to have its say in a "no deal" situation".

Federal Bureau of Investigation arrests 29 Nigerians for alleged internet fraud
The fraudsters will also target individuals with romance or lottery scams. The elderly are particularly targeted in BEC schemes.

Wonder Woman 1984 First Look: Steve Trevor Is Alive?!
The script is based on a treatment by Jenkins and Geoff Johns , who recently confirmed that the film takes place in 1984. Where did he get that tracksuit and how is it the most toned-down thing happening in this neon '80s dreamscape?

Steam Announces 'Steam Chat' Client to Improve On-Platform Communication
Valve is officially bringing Steam to China with the help of game and movie company Perfect World , it announced Monday. New features include a modernized chat experience, a more flexible friend list, group chats built for gaming, and more.


More News

News
More News