Toyota Motor sees online transport services as a profitable business. After buying a small stake in Uber in May 2016, now the Japanese automaker wants to invest in Grab.
According to Bloomberg reports, investments are made through a subsidiary of Toyota Tsusho, which is responsible for taking care of trading for Toyota Motor. There is no mention of the value of the investment that has been agreed by both companies.
“Through collaboration with Grab, we want to explore new ways to deliver safe, easy, and attractive mobility services to our fleet customers in Southeast Asia,” said Shigeki Tomoyama, Senior Managing Officer of Toyota, as quoted by Bloomberg.
Both companies will work together to maximize the performance of Toyota vehicles used by Grab drivers. Toyota will record and analyze data on the driving patterns of 100 Toyota cars at Grab’s fleet in Singapore, and offer recommendations on the connected services it can provide to Grab drivers.
“We believe this will benefit our driver partners,” said one of Grab’s founders and CEO Anthony Tan. “We look forward to exploring other ways to collaborate with Toyota in the future.”
Toyota’s investment in Grab is part of a 6 billion yen Next Technology Fund funded by Toyota Tsusho in April to develop business opportunities in innovative technologies, products and services.
Toyota is not the only automotive company to be a Grab investor. Honda had previously done a similar action with the value of an undisclosed investment last year. Grab currently aims to raise $ 2.5 billion from the latest funding round, which has previously announced a $ 2 billion investment from Didi Chuxing and SoftBank Group. The investment brings Grab valuation value equivalent to 6 billion US dollars.
In Southeast Asia, Grab claims to have 95 percent market share in taxi bookings through third parties and 71 percent in private vehicle reservations Grab.