Toyota invests $1 billion in Grab, an Asian ride-hailing service
Toyota has invested $1 billion in Grab, a ride-hailing company based in Singapore. After the investment, Grab’s value has increased to $10 billion with major accreditation being given out to Grab’s acquisition of Uber’s South Asian operations at the start of this year.
This is the largest investment made by Toyota in a ride-hailing service and can be seen as a continuity of the trend of car manufacturers investing in ride-hailing services. South Korean brand, Hyundai, and Japan-based Honda have invested in Grab as well. Grab started out in 2012 in Singapore and has expanded aggressively ever since. Their operations are currently in 8 countries across South Asia, such as Vietnam, Malaysia, Indonesia etc.
The investment now entitles Toyota to the placement of an executive within Grab’s team along with a seat on the Board of Directors. Grab has welcomed Toyota’s investment, labeling it an important step towards easing traffic congestion in Asian megacities. Grab will also work with the Toyota Mobility Service Platform after the investment to bring a host of services like user-based insurance and predictive car maintenance etc.
This isn’t the first time Toyota has invested in the ride-hailing service. Toyota originally invested in Grab through it’s Next Technology Fund last year. Owing to successful funding rounds over the years, Grab has managed to gain over 100 million app downloads throughout 8 countries in South Asia and are currently the market leaders in ride-hailing in these countries. According to their latest financials, Grab’s revenue exceeds $1 billion now.
Grab Inc. has expanded its portfolio extensively. It also offers food delivery services along with its ride-hailing service. Additionally, it has introduced a mobile-wallet for payments as well.