Published on June 13th, 2018 | by Subhash Nair0
Toyota Invests US$1 Billion in Grab
Toyota announced today that it has concluded an agreement with Grab to strengthen their existing partnership and expand the collaboration between Toyota and Grab in Southeast Asia to drive further advances in Mobility as a Service across the region. As part of this agreement, Toyota will invest $1 billion U.S. dollars in Grab. Furthermore, to accelerate decision-making, one Toyota executive will be appointed to Grab’s board of directors and a dedicated Toyota team member will be seconded to Grab to as an executive officer, with Toyota considering more personnel exchanges in the future.
Grab operates online-to-offline mobile platforms in transportation, food and package delivery, mobile payments and financial services in 217 cities in eight Southeast Asian countries. In March this year, it acquired Uber Technologies Inc.’s Southeast Asian assets, and is now the partner of choice for ride-hailing in the region.
Since August 2017, Toyota and Grab have been developing connected services for Grab utilizing driving data collected by Toyota’s TransLog data-transmission driving recorder. The recorder, developed by Toyota for corporate fleets, has been installed in 100 Grab rental cars. The data collected is stored on Toyota’s proprietary mobility services platform (MSPF), which serves as a form of information infrastructure for connected vehicles. Both companies have already begun collaboration in the field of connected vehicles by, for example, providing driving-data-based automotive insurance for Grab’s rental fleet in Singapore through local insurance companies.
Toyota and Grab’s initial success led them to expand their collaboration, as announced today. This expansion is aimed at achieving connectivity for Grab’s rental car fleet across Southeast Asia, and at rolling out various connected services throughout the region that utilize vehicle data stored on Toyota’s MSPF. In addition, collaborations in driving-data-based automotive insurance, financial services for Grab drivers and maintenance services are also contemplated under the new partnership.
Through this new agreement, Toyota and Grab plan to shift into full-scale implementation of services they have been developing to customers in Southeast Asia. The two companies will look for future collaborations.