Mubasher: Japan’s Toyota Motor Corp. on Wednesday has revealed plans to pump $1 billion in investments in Singaporean startup Grab Inc. during the coming period.
The agreement is considered a major expansion for the 2017 joint collaboration that allows Toyota to offer software services for Grab.
The automotive business will likely be in “jeopardy” in a future where self-driving and shared vehicles are dominant, that is why Toyota CEO Akio Toyoda has, reportedly, pushed his company to enter into new businesses, including ride-hailing Grab, to ensure its survival.
Commenting on the deal Grab co-founder and CEO Anthony Tan said his company was “thrilled to have Toyota onboard as a long-term, strategic partner.”
He went on to say that the Toyota partnership was “strong” and would enable Grab to become the one-stop mobility platform in Southeast Asia.
The Grab Inc. deal is considered one of Toyota’s largest investments outside of its core car-manufacturing business.
Grab operates online-to-offline mobile platforms in transportation, food and package delivery, mobile payments and financial services in 217 cities across eight Southeast Asian countries.
In March, Grab acquired Uber Technologies Inc.'s Southeast Asian assets, making it the go-to ride-hailing firm in the region.