Toyota Motor Company is set to invest approximately $1 billion into the popular Southeast Asian ride-sharing app Grab.
Grab has been excited to announce such a large-scaled investment from a major car manufacturer like Toyota.
This particular investment will allow the two companies expand on their pre-existing partnership while exploring new strategies across Asia. To accomplish this, each company will allow an Executive from the other company to join their Board of Directors.
The large-scale dollar amount is supposed to allow Grab expand its range of online-to-offline services throughout Asia. This includes, but is not limited to food delivery and electronic payments.
“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 [online-to-offline] mobile services, such as GrabFood and GrabPay, in the region,” Ming Maa, president of Grab, said in a public statement.
For quite some time, Toyota has been looking at services like user-based insurance and predictive maintenance. This investment could serve as a vessel for that. It’s also providing an incentive for drivers to drive more safely to take advantage of lower insurance premiums.
“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’s Executive Vice President.
Congratulations to both brands!