Toyota will invest $1 billion into Grab, the latter said today, June 13. This investment is a build on the existing partnership between the companies and targets exploring new mobility strategies in Southeast Asia.
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, Grab’s President
The deal also includes an executive from Toyota joining Grab’s Board of Directors. Similarly, a team member of Toyota will come to Grab as an executive officer. According to the Singapore-based company, it is the largest investment by an automotive manufacturer.
The agreement will enable Grab in expanding its services like food delivery and electronic payments in Southeast Asia.
In terms of benefitting, the Toyota Motor investment will lead the Japanese automotive company in integrating its services like predictive maintenance and user-based insurance. This will trigger drivers to be more careful about enjoying lower insurance premiums.
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Shigeki Tomoyama, executive VP of Toyota said: “Going forward, together with Grab, we will develop services that are more attractive, safe and secure for our customers in Southeast Asia.”