Automaker giant Toyota Motor Corp has agreed to invest $1 billion in Southeast Asia’s leading ride-hailing company Grab. The latest round of funding values Grab at $10 billion. In comparison, Uber, the leading ridesharing company was valued at $62 billion, when it announced its 1st quarter results in May this year.
Toyota’s funding marks the biggest investment by the automaker and sets the trend for carmakers investing in ride-hailing companies, which can be seen as a forward integration strategy.
Grab stated this investment allows it to further expand its range of O2O (online-to-offline) services including GrabFood and GrabPay across Southeast Asia region.
In a statement, Anthony Tan, the CEO of Grab said, “This strong partnership will enable us to become the one-stop mobility platform in south-east Asia”.
Following the funding round, Toyota will appoint one executive on Grab’s board of directors and a dedicated team member as executive officer, to deepen the collaboration between the companies, the statement read.
Uber had recently sold its Southeast Asian business to Grab and in return got 27.5% stake in the company, and making Grab the largest player in the region.
Grab also counts Hyundai Motor Company as one of its investor, which invested in Series-G funding in Jan this year.