Toyota Has Agreed to Buy a $1 Billion Stake in Grab
Japan’s top automaker Toyota Motor Corp. has agreed to buy a $1 billion stake in Southeast Asia’s startup Grab in the biggest investment by a carmaker into a ride-hailing firm. The new funding values Grab at just over $10 billion, according to a person familiar with the company.
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.
According to sources, Toyota will also share technology with Grab, including software that predicts when cars need maintenance.
The two companies already had a relationship: Toyota’s trading arm invested an undisclosed amount in Grab last year.
“I am delighted that we are strengthening our collaboration, which utilizes Toyota’s connected technologies,” Toyota Executive Vice President Shigeki Tomoyama said in a statement.
The cooperation with Grab will focus on services related to fleet management, such as maintenance. The two companies are exchanging information on autonomous driving, but no decision has been made on collaboration in that area, a Toyota spokeswoman said. The automaker is still discussing which executive to send to Grab’s board, and is considering dispatching “a number” of Toyota employees to its partner, the spokeswoman said.
“Going forward, together with Grab, we will develop services that are more attractive, safe and secure for our customers in Southeast Asia,” said Tomoyama.
Grab now claims over 100 million downloads of its app across eight countries in Asia, including Singapore, Indonesia, Vietnam, Thailand and more. The firm said its annual revenue run rate has now surpassed $1 billion, although it declined to provide profit or loss numbers.