If you thought that Grab's acquisition of Uber's Southeast Asian operations was a mic drop, think again. The Singapore-based company is poised to become an even bigger presence in the region thanks to a massive investment from a major Japanese carmaker.
Today, Grab announced that Toyota has agreed to invest $1 billion in the company. Together, the two will further strengthen their existing collaborations on connected cars and mobility solutions across Southeast Asia. Grab explains that this is the largest investment by a car manufacturer in ride-sharing, subject to certain closing conditions.
Grab president Ming Maa said: “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 O2O mobile services, such as GrabFood and GrabPay, in the region."
Toyota executive VP and president of in-house Connected Car Company Shigeki Tomoyama, meanwhile, is "delighted" with the arrangement, and promises to further develop services for Southeast Asian customers.
Grab and Toyota will work together on enriching drivers' experience through the Toyota Mobility Service Platform. They'll also roll out other services, such as telematics-based insurance, which may lower insurance premiums for drivers. In addition, one Toyota executive will be placed on Grab's board of directors while another Toyota team member will be sent to Grab as an executive officer.
What do you guys think? Will this collaboration improve Grab's services?
This story originally appeared on Topgear.com.ph.
* Minor edits have been made by the Entrepreneur.com.ph editors.