This is by far the largest deal a by a carmaker in a ride-hailing provider.
This move by Toyota definitely marks the transition of traditional carmakers from manufacturing to services.
The Japanese company just agreed to acquire a $1 Billion stake in Grab, Southeast Asia’s biggest ride-hailing company. The announcement was made in a statement by Toyota earlier this week. The company did not disclose what percentage of Grab it will own.
According to a person familiar with the deal, the value of six-year-old Grab will be just over $10 billion after the investment.
“We will work with partners like Toyota to continue to transform transportation in Southeast Asia,” Grab said in an email to Reuters. “We want to be the one-stop mobility platform for users.”
“Going forward, together with Grab, we will develop services that are more attractive, safe and secure for our customers in Southeast Asia,” Toyota executive Shigeki Tomoyama said in a statement.
This is not the first time that the Japan-based company has invested in Grab. Last year, it also pumped in an undisclosed amount to the latter. Toyota also invested in San Francisco-based Uber as well as in Japan Taxi Co. Ltd, an Uber rival.
The car industry is really racing with tech companies to gain a level footing on mobility services. With the rise of ride-hailing and vehicle sharing companies, there is a lesser need for car ownership. Honda and General Motors are the two other big names who have also invested in ride-hailing applications.
Want to be more involved with the selection of what we report? Or buy us a coffee, maybe?
Be one of our patrons and help keep this place alive with the latest and trendiest tech, games and gadget news.
It doesn’t take a lot but it will help us loads. Click here for a SHORT explanation.
(We only give cool stuff. Pinky swear!)