Grab, Southeast Asia’s leading O2O mobile platform, is to receive US$1 Billion investment from Toyota Motor Corporation.
Toyota made the commitment as a lead investor in the company’s ongoing financing round. As part of the agreement, Grab and Toyota will strengthen and expand their existing collaboration in the area of connected cars, to drive the adoption of new mobility solutions across Southeast Asia.
The transaction is subject to the satisfaction of certain closing conditions.
This investment allows Grab to further expand its range of O2O services, such as GrabFood and GrabPay, deeper into the region. Grab operates in 217 cities across eight Southeast Asian countries and offers users safe and affordable transport, food and package delivery, mobile payments and financial services through its Grab mobile app.
Led by Ming Maa, President, Grab will work with Toyota on how connected car services on the Toyota Mobility Service Platform (MSPF) – such as user-based insurance, financing program and predictive maintenance – could enrich the Grab experience for drivers on the Grab platform.
Grab and Toyota will roll-out connected car services, such as telematics-based insurance, which may reduce the cost of insurance premiums for safer Grab drivers.
To deepen the strategic collaboration, one Toyota executive will be appointed to Grab’s board of directors and a dedicated Toyota team member will be seconded to Grab as an executive officer.
Grab is an O2O mobile platform, providing a wide range of on-demand transport services in the region, in addition to food and package delivery services. Its food delivery service, GrabFood, operates across Malaysia, Singapore, Vietnam, Indonesia, Philippines and Thailand while Grab Financial increases access to cashless services for millions of Grab customers across Southeast Asia, and connects the underserved and unbanked population to financial services.