Grab has reached an agreement with Toyota under which Toyota will invest US$1 billion in Grab, as a lead investor in the company’s ongoing financing round. The leading mobile O2O platform in Southeast Asia announced recently.
As part of the agreement, Grab and Toyota will strengthen and expand their existing collaboration in the area of connected cars, to drive the adoption of new mobility solutions across Southeast Asia.
This investment allows Grab to further expand its range of O2O services, such as GrabFood and GrabPay, deeper into the region. Grab operates in 217 cities across eight Southeast Asian countries and offers users safe and affordable transport, food and package delivery, mobile payments and financial services through its Grab mobile app.
Grab will also work with Toyota on how connected car services on the Toyota Mobility Service Platform (MSPF). The companies will roll-out connected car services, such as telematics-based insurance, which may reduce the cost of insurance premiums for safer Grab drivers.
This investment by Toyota is the largest-ever by an automotive manufacturer in the global ride-hailing sector, and brings Grab closer to achieving its vision of becoming a one-stop mobility platform in Southeast Asia. The transaction is subject to the satisfaction of certain closing conditions.
To deepen the strategic collaboration, 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.