Published: Wed, June 13, 2018
Business | By Kate Woods

Southeast Asia’s Grab lands $1B from Toyota at a $10B valuation

Southeast Asia’s Grab lands $1B from Toyota at a $10B valuation

A logo of Toyota Motor Corp is seen at the company's showroom in Tokyo, Japan June 14, 2016.

Grab operates across Asia and agreed to acquire Uber's Southeast Asian business earlier this year. Meanwhile Japan's SoftBank Group Corp - also an investor in Grab and Uber - last month said it would invest $2.25 billion in GM's autonomous vehicle unit Cruise.

Other automakers have put money into the ride-hailing industry.

When asked about other investors in this round, a Grab spokesman told The Business Times: "Toyota will be one of our lead investors for this round".

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The deal extends Toyota's cooperation with Grab, the largest ride-hailing service in Southeast Asia, the carmaker said in a statement Wednesday, without disclosing what percentage of Grab it will own.

FILE PHOTO: A man walks past a Grab office in Singapore March 26, 2018.

The fresh funds will allow Grab to further expand services such as its food delivery service GrabFood and mobile payments GrabPay to more countries across the region.

Toyota has installed its driving recorder devices in some vehicles operated by Grab, using the collected data stored in its mobility services platform to analyse driving patterns and develop vehicle services.

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The automaker on Wednesday said by deepening the partnership, it hoped to achieve connectivity for Grab's rental auto fleet across Southeast Asia and offer financing, insurance and maintenance services to drivers based on data collected on its platform.

Wednesday's announcement deepens Toyota's partnership with Grab, following an earlier, undisclosed investment by the automaker's trading arm a year ago. This strong partnership will enable us to become the one-stop mobility platform in Southeast Asia.

Toyota Motor Corp has agreed to invest USD1 billion in Southeast Asian ride-hailing firm Grab as a lead investor in the company's ongoing financing round. The Malaysian-born but now Singapore-based company has its namesake app in over 100 million mobile devices, giving passengers access to over 6.6 million drivers and agents. Grab recently took over Uber's Southeast Asia operations after years of competition, and is now going head-to-head in Indonesia with rival Go-jek.

In return for its capital, Toyota will also get a board seat and the opportunity to place an executive within Grab's team. Grab has already forced Uber Technologies Inc.to retreat from Southeast Asia. General Motors Co. and Honda Motor Co. are among carmakers that have invested in ride-hailing applications.

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Grab's main rival is now Indonesia's Go-Jek which last month said it would invest $500 million to begin expanding overseas.

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