In an effort to help Grab achieve its vision of becoming Asia’s leading online-to-offline (O2O) mobile platform, Toyota Motor Corporation has pledged a $1 billion investment in the Singapore-based mobile service app. And this transaction will mark the largest global investment by an automotive company in the ride-hailing sector, according to the press release.
As part of this collaboration, Grab will work with Toyota on how connected car services (such as user-based insurance, financing programs and predictive maintenance) could enhance the experience for Grab drivers. User-based insurance, for example, could reduce the cost of insurance premiums for safer Grab drivers.
Ultimately, this investment will enable Grab to continue expanding and enhancing its services in the O2O sector. This includes GrabFood, GrabPay and the traditional ride-hailing services the Grab app has always been synonymous with. And according to Reuters, the value of six-year-old Grab will be just over $10 billion after the investment
“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,” said Grab President Ming Maa in the same release.
“Grab is the first Southeast Asian technology startup to have achieved run rate revenues of over US$1 billion across an installed mobile base of over 100 million users. Our rapid user and revenue growth is a testament to our ability to hyper-localize, efficiently execute and provide the highest efficiency platform in a region as diverse as Southeast Asia.”
Grab also plans on continuing their work through collaborative partnerships to optimize the transport system in Southeast Asia, make mobility accessible for all and enhance income opportunities for Grab driver-partners, the company said.