Toyota to invest US$1b in Grab's latest funding round

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

Automotive manufacturer Toyota will invest US$1b in Grab’s ongoing funding round as the two companies work together to expand their collaboration in the area of connected cars.

Also read: Grab's revenue breached US$1b mark: report

The investment by Toyota, which is the largest ever by an automotive manufacturer in the global ride-hailing sector, will allow Grab to expand its range of O2O services like GrabFood and GrabPay, according to a company statement.

“As a global leader in the automotive industry, Toyota’s investment in Grab is based on their conviction in our leadership in driving the adoption of new mobility solutions and expanding O2O mobile services, such as GrabFood and GrabPay, in the region,” said Ming Maa, president at Grab.

Also read: Grab may be spreading itself too thin as it guns for dominance in Southeast Asia

Grab will collaborate with Toyota on how connected car services on the Toyota Mobility Service Platform (MSPF) – such as user-based insurance, financing program and predictive maintenance – could enrich the Grab experience for drivers on the Grab platform.

Grab and Toyota will also roll-out connected car services, such as telematics-based insurance, which may reduce the cost of insurance premiums for safer Grab drivers.

One 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.

“I am delighted that we are strengthening our collaboration, which utilizes Toyota’s connected technologies, with Grab, Southeast Asia’s leading ride-hailing company. 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.