Toyota Motor to invest USD1 billion in ride-hailing firm Grab

13 June, 2018, 18:38 | Author: Eric Barnett
  • Toyota to invest billion in Grab

This deal will apparently raise Grab's value from US$6 billion to US$10 billion, according to TechCrunch. 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.

The world's most profitable vehicle manufacturer is investing $1 billion in Singapore's Grab Holdings Inc., valuing Southeast Asia's largest car-hailing service at just more than $10 billion, according to a person familiar with the transaction.

Since August 2017, Toyota and Grab have been developing connected services for the latter, utilising driving data collected by Toyota's TransLog data-transmission driving recorder.

Toyota will place one of its executives on Grab's board, and a second Toyota team member will serve as an executive officer at the company, which Toyota called the "partner of choice for ride-hailing in the region".

Toyota Motor Corp.is making the largest ever bet by an automaker on ride-hailing as it embraces new businesses that threaten to disrupt the industry's traditional vehicle ownership model. The company has also backed Uber Technologies and invested in Japan Taxi, an Uber rival run by the chairman of Tokyo's biggest taxi operator.

It is also the latest collaboration between a global vehicle maker and a technology firm as ride-hailing companies dominate the fast-growing field of mobility services, raising the risk of a future where auto ownership declines in favour of such services.


As part of this agreement, Toyota will invest US$1 billion (RM4 billion) in Grab.

"A board seat nearly guarantees that Grab will buy cars from Toyota", said Steve Man, an analyst at Bloomberg Intelligence in Hong Kong. Toyota said the Singapore-based startup has big growth potential in a region that is home to around 600 million people.

From its beginnings as a taxi-booking app - its original name is GrabTaxi - the company is morphing into an online platform for connecting users and offline services, and is venturing into financial services and venture capital.

Toyota put money into Grab via its Next Technology Fund past year, but this time around the capital comes directly from the parent company.

Other Grab investors include Japan's Honda Motor Co Ltd, South Korea's Hyundai Motor Co and Chinese ride-hailing firm Didi Chuxing. But Grab still faces fierce competition from Indonesian rival Go-Jek, which is expanding ride-hailing and other services in Southeast Asia.

Grab said it logs six million rides a day via apps downloaded onto over 100 million mobile devices. "Going forward, together with Grab, we will develop services that are more attractive, safe and secure for our customers in Southeast Asia", Shigeki Tomoyama, Toyota executive vice president and president of Toyota's in-house Connected Car Company, said.

Recommended:

  • Trump renews attack on OPEC ahead of group's production meeting

    In April, Trump also blasted OPEC on Twitter, accusing the group of "artificially" raising oil prices. Oil prices are set, for the most part, by Saudi Arabia and, to a lesser extent, it's OPEC partners.
    USA, Canada and Mexico to host football World Cup 2026

    USA, Canada and Mexico to host football World Cup 2026

    Canada's men's team has not played in the World Cup since 1986 but traditionally, host countries do get to play. The mayors of two of Canada's host cities celebrated the early-morning announcement on Twitter.
    Justify: Racing's $75-Million Horse?

    Justify: Racing's $75-Million Horse?

    The Belmont Stakes is the last of the Triple Crown races, after the Kentucky Derby and the Preakness Stakes . Jun 9, 2018; Elmont, NY , USA; Mike Smith aboard Justify wins the 150th Belmont Stakes at Belmont Park.
  • Savannah Phillips pushes Prince George down a hill

    Savannah Phillips pushes Prince George down a hill

    But the prince and princess were clearly having far too much fun to actually sit down and watch the match. It was a busy weekend for the Cambridges this weekend as they had Trooping the Colour on Saturday.
    Austria vs. Brazil - Football Match Report

    Austria vs. Brazil - Football Match Report

    His nickname dates back to that time: he went by Ade until Scolari, mixing him up with another youngster, introduced him as Tite . Coutinho seemed to laugh off the prank as Brazil prepare for their World Cup opener against Switzerland on Sunday.
    United Nations  warns against consequences of Saudi-led attack on Yemen's Hudaydah

    United Nations warns against consequences of Saudi-led attack on Yemen's Hudaydah

    The United Nations and other aid groups already had pulled their global staff from Hodeida ahead of the rumored assault. Saudi Arabia views the Houthis as Iranian proxies, but the rebels deny receiving military support from Tehran.
  • Thiem ends Cecchinato's run to reach French Open final

    Thiem ends Cecchinato's run to reach French Open final

    The first set had taken 57 minutes, in stiflingly humid conditions, but there was to be no let-up for the underdog in the second. At long last, Thiem converted his fifth set point when Cecchinato sent a forehand long. "Still, I know how to play against him".

    Meghan formally becomes part of the The Royal Foundation

    The Duchess of Sussex , will carry out her first official engagement with the Queen this week. The day started with a grand military parade and the arrivals of the royals via carriages.
    Dennis Rodman Cries from Joy over Donald Trump, North Korea Summit

    Dennis Rodman Cries from Joy over Donald Trump, North Korea Summit

    Carmen Electra's ex-husband was on national television in a Make America Great Again hat sobbing while worshipping Kim and Trump. The final deal over the North Korean problem is yet to be signed, and the US wants South Korea and China to be part of it.
  • Top aide to EPA chief abruptly resigns

    Top aide to EPA chief abruptly resigns

    He wanted to look into the possibility of his wife, Marlyn Pruitt, managing her own Chick-fil-A franchise. He said more are needed in his hometown of Tulsa, Oklahoma, and around the country.
    Mix of Western, Asian dishes served at Trump-Kim summit during lunch

    Mix of Western, Asian dishes served at Trump-Kim summit during lunch

    He agrees that the name is fitting for the message Trump wants to deliver, but wishes he would've chosen a different name. He also blamed previous administrations for remaining silent in the face of North Korea's sharp rhetoric.
    How the Hill Reacted to the Trump-Kim Summit

    How the Hill Reacted to the Trump-Kim Summit

    Trump's total sidelining of North Korea's infamous human rights abuses has also caused concern . He said that Kim is "very smart" and a "good negotiator".


Popular

US, Canada, Mexico win bid to host 2026 FIFA World Cup
They warned "the amount of new infrastructure required for the Morocco 2026 bid to become reality can not be overstated". The 2026 World Cup will be the first tournament played in the expanded 48-team format, up from the current 32 countries.

MTV Developing Aeon Flux Live-Action Reboot
According to The Hollywood Reporter , Davis has been hired to write the script and executive produce the new Aeon Flux series. The movie has a miserable 9% on Rotten Tomatoes and couldn't even make back its $62 million budget at the box office .

Rosen, Heller faceoff set for November in Nevada Senate race
Longtime Register of Deeds John O'Brien of Lynn also will be facing a Democratic primary challenge in September. The district includes Virginia Beach, the state's largest city, and the world's largest Navy base in Norfolk.

Mo Salah provides boost for Egyptians ahead of their World Cup opener
Uruguay are the favourites in Group A, which also includes hosts Russian Federation and Saudi Arabia, who kick off the World Cup on June 14.

High-level North Korean official arrives in NY
Ambassador to the United Nations, Pompeo tweeted: "Substantive talks with the team from #NorthKorea". ET on the White House South Lawn, where foreign dignitaries are typically received by the President.

State leaders not concerned with Trump's trade tiff with Canada
There is no obvious precedent for such a coordinated and acerbic series of attacks by White House advisers on a stalwart US ally. The next morning, Navarro and chief economics adviser Larry Kudlow were deployed to the Sunday talk shows.

IL officer rescues young boy running on busy Chicago area road
Police in IL released video showing the moment an officer stopped to save a young boy he saw running on the side of a busy road. The department's post says the child "escaped his mother's watchful eye" and wandered along Route 59 as traffic whizzed by.

Macedonia Gets New Name, Ending 27-Year Dispute With Greece
Macedonia has agreed to change its name, bringing an end to a 27-year long dispute with neighbouring Greece . The Greek prime minister will now inform the country's president and will later give a televised statement.

E3 2018: Bethesda Announces Starfield (+trailer)
The tease was literally just that - thirty seconds of scrolling Tamriel landscape concluding with "The Elder Scrolls VI " titling. If you think that was all the company had to offer in the form of big news at this year's conference you were sadly mistaken.

Raccoon scales skyscraper in Minnesota
Workers inside the UBS building have had a front-row seat to the action, including lawyer Sheila Donnelly-Coyne. The daredevil began its ascent Tuesday morning, climbing 12 stories shortly before noon, according to Nelson .