Toyota Motor Corp. said Wednesday it will invest $ 1 billion in major ride-hailing company Grab Holdings Inc. to strengthen ties in expanding business in Southeast Asia.
Under the collaboration, a 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.
Grab provides services in 217 cities in eight Southeast Asian countries and has a high market share in ride-hailing, taxi-hailing and rental car services in the region, according to Toyota. Grab acquired Uber Technologies Inc.’s Southeast Asian operations in March.
Toyota’s data-transmission driving recorders have been installed on Grab rental cars to collect and analyze vehicle and driving data.
Toyota and Grab teamed up last August and have explored offering data-based services in car insurance and maintenance.
“I am delighted that we are strengthening our collaboration, which utilizes Toyota’s connected technologies, with Grab,” said Shigeki Tomoyama, Toyota executive vice president.
Anthony Tan, co-founder and CEO of Grab, said, “This strong partnership will enable us to become the one-stop mobility platform in Southeast Asia.”