Toyota to invest RM4 bil in Grab, gets seat on board

Toyota to invest RM4 bil in Grab, gets seat on board

Toyota announced today that it has concluded an agreement with ride-sharing app company Grab to strengthen their existing partnership and expand collaboration in Southeast Asia to drive further advances in Mobility as a Service (MaaS).

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

Toyota is the lead investor in Grab’s ongoing financing round, launched following Grab’s takeover of Uber’s Southeast Asian assets. The US$1 billion sum is the largest-ever investment globally by an automaker in the ride-hailing sector.

Toyota to invest RM4 bil in Grab, gets seat on board

Besides the namesake app that we’re familiar with, Grab operates online-to-offline (O2O) mobile platforms in transportation, food and package delivery, mobile payments and financial services in 217 cities across eight ASEAN countries. In March this year, it acquired Uber’s Southeast Asian assets to be the dominant ride-hailing player in the region.

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. 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 to invest RM4 bil in Grab, gets seat on board

Today’s announced 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 use 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. The two companies will look for future collaborations aimed to achieve more-efficient ride-hailing businesses and for developing future mobility service solutions and MaaS vehicles.

Grab says that this investment allows it to further expand its range of O2O services, such as GrabFood and GrabPay, deeper into the region.

Toyota to invest RM4 bil in Grab, gets seat on board

“We are thrilled to have Toyota onboard as a long-term, strategic partner of Grab. Toyota is an incredible company that has done so much for the world. This strong partnership will enable us to become the one-stop mobility platform in Southeast Asia. We look forward to executing the same vision of the future. A future that will provide for safer and more affordable rides, more liveable cities, and millions of new micro businesses in the digital revolution. We will continue to work with global leaders like Toyota in bringing this vision to pass,” said Anthony Tan, co-founder and CEO of Grab.

“I am delighted that we are strengthening our collaboration, which utilises Toyota’s connected technologies, with Grab. Going forward, together with Grab, we will develop services that are more attractive, safe and secure for our customers in Southeast Asia,” said Shigeki Tomoyama, Toyota executive VP and president of Toyota’s in-house Connected Company.

How big is Grab today? 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. It also has Southeast Asia’s biggest land transportation fleet, delivering over six million rides per day.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Phaser on Jun 13, 2018 at 11:53 am

    The prodigal son has now become more successful than his family company. Amazing.

    Like or Dislike: Thumb up 2 Thumb down 1
  • TOYOTA KING OF KINGS on Jun 13, 2018 at 11:58 am

    Yesterday, Trump & Kim.
    Today, Tun M & Abe.
    Future, Toyota and Grab.

    Like or Dislike: Thumb up 6 Thumb down 2
    • Loans will be denominated in Yen. Lolz! MY will be owed by Jepunis for the next 30 years, just like b4. Baru habis bayar itu loan, alredi take another for next 2 generations to pay off.

      Like or Dislike: Thumb up 16 Thumb down 3
      • Rajoo Selvam on Jun 13, 2018 at 7:59 pm

        better than your old boss who stole billions from the country…oh wai

        And his gang of pencuri also….oh wai!

        Like or Dislike: Thumb up 0 Thumb down 10
        • U mean like ur new ‘old’ boss who stole billions from the country by making his cronies & sons billionaires… oh wai

          And his gang of pencuri cronies also.. oh wai!

          Like or Dislike: Thumb up 0 Thumb down 0
        • Kantoied but Still Wanna Defend on Jun 14, 2018 at 11:01 am

          Ye lah tu. Macam le ko punya bos xpernah curi masa 22 tahun diatas. Towkay u pencuri terhebat tahap Pirate King.

          Like or Dislike: Thumb up 0 Thumb down 0
  • Tan Chong on Jun 13, 2018 at 12:02 pm

    Good to see that OEMs are also looking into Mobility Services.
    However, will there be conflict of interest with Nissan? Anthony Tan is the grandson of Tan Chong founder and business in Malaysia/Singapore is primarily on Nissan or Subaru group.

    Like or Dislike: Thumb up 1 Thumb down 1
    • Muhammad Radzi,b Ismail on Jun 13, 2018 at 2:53 pm

      Ya,we won’t let the unhealthy monopoly by,any transport company bcos customers deserve,a choice,for other,ehsiling,taxis such as fast growing MyCar taxi.So plse, no room for monopoly,and liscence control by Msi as n government,but not by Grab or Toyota!and we be influence to,our,ministers,/politiccians on,all,unhealthy,competition !

      Like or Dislike: Thumb up 1 Thumb down 2
  • Ben Yap on Jun 13, 2018 at 12:37 pm

    there will be an increase in grab cars without VSC. dangerous….

    Like or Dislike: Thumb up 1 Thumb down 3
    • Farred on Jun 13, 2018 at 1:51 pm

      Credits to Datuk Seri Liow Tiong Lai.

      https://paultan.org/2016/11/29/stability-control-mandatory-in-malaysia-by-june-2018/

      Like or Dislike: Thumb up 7 Thumb down 0
      • Lets see if this new gov will honour this janji or not.

        Like or Dislike: Thumb up 6 Thumb down 0
        • loler on Jun 13, 2018 at 2:57 pm

          Liow part of this new gov? Lols.

          Like or Dislike: Thumb up 5 Thumb down 0
          • If New MY gov renegades on this janji, then RIP for safer cars in MY. RIP the lives lost becoz of this stupidity, and I pray urs will not be one of the statistics.

            Like or Dislike: Thumb up 20 Thumb down 0
          • yawnz on Jun 14, 2018 at 12:41 pm

            Amin…

            Like or Dislike: Thumb up 0 Thumb down 0
          • loler on Jun 16, 2018 at 9:28 am

            Cybertroopers dun have holiday? lol

            Oh ,dun hack may name

            Like or Dislike: Thumb up 0 Thumb down 0
  • Muhammad Radzi,b Ismail on Jun 13, 2018 at 2:42 pm

    We,won’t,allow,monopoly bcos other ehaiing taxi business to,are expanding ang getting sponsored,by other,automobulecompanues so,no big deal and Grab stop boosting around!We the,public also,deserve other choices of transport services,like My,Car,and others,so,we gurentee you that we,re,against,monopoly,and,the PH,government that,we,voted,in won’t allow,that !So,we want,other ehailing transport bussines to grow and expand too,and also,being sponsored and,shared,by bigger car,manufacturers!!We won’t support your monopoly,gesture!!nooo wayyyyyyy and the public allso,use My,Car widely,with other taxi,business!!

    Like or Dislike: Thumb up 2 Thumb down 1
  • Grab always money mined and so much hiding cost.. getting cheap service for huge money..

    Like or Dislike: Thumb up 0 Thumb down 0
  • Moyang Anuar on Jun 15, 2018 at 3:06 am

    Tqvm for the information
    Please get ready to pay your tax

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ollie on Jun 19, 2018 at 11:31 am

    A dangerous situation is rooting with Grab taking advantage of its monopoly. They have increased fares for passengers AND increased driver commission to 25% with ZERO incentives. Everyday, drivers are hitting gross fares of RM300, and paying 25% commission to Grab = RM75! After petrol, see just RM150 in earnings for working 12 hour days!

    Remember the days when taxi drivers were hung out to dry because they have to pay daily rental to the taxi co? Well, Grab boy has learnt from his daddy.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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