Where will Grab spend Toyota's US$1b investment?

The US$1b it invested won’t just go towards Grab’s push for connected cars.

Grab received a US$1b investment from Toyota for its push towards connected cars, marking the largest ever injection made by an auto manufacturer in the ride-hailing sector. However, Toyota’s investment won’t solely be going to Grab’s car-related business, it will also go to other O2O services like GrabFood and GrabPay.

A Grab spokesperson told Singapore Business Review that the proceeds will develop Grab Financial’s capacities for mobile payments, micro-financing, and insurance, amongst others. It will also help GrabFood’s Southeast Asian expansion.

“Grab is already the app that people rely on to get around, and increasingly users are also using Grab as their e-wallet to make payments, or to get food and parcels delivered,” she said.

Moreover, Grab expects that users will be able to use the app for more key everyday services, from bill-payment to shopping online. “In the future, as we move towards the Internet of Things and a more digitally connected world, consumers can even look forward to a truly ubiquitous experience, where they can access Grab’s O2O ecosystem of transport, payments, food and package delivery anywhere,” she added.

Grab also has a goal to be “the one-stop mobility platform for users” by allowing users to forgo car ownership, to have frictionless control over all of the different modes of transportation they can choose for one journey, and to pay with one click.

“We also want to delve into connected services such as user-based insurance, financing program, and predictive maintenance,” the spokesperson said. “This is a value-add for our drivers and enable more efficient and safer driving on the roads and lower cost of fleet maintenance.”

A few days later, Grab has also obtained an oversubscribed $500m syndicated facility from banks and financial institutions to fund its vehicle fleet. However, when asked how many cars they are planning to install the spokesperson said that they do not have a forecast at this point.