By on June 13, 2018

Toyota logo dealership sign

Not wanting to be left out of the alternative revenue streams party, Toyota Motor Corporation has invested $1 billion into a Singapore-based ride-hailing and ride sharing company you’ve probably never heard of.

Grab Holdings Inc., known to consumers simply as Grab, offers numerous car-based transportation options and services in Southeast Asia. Don’t have a car? Borrow one from Grab. Hail one operated by Grab.

In the future, it seems likely that car will be a Toyota.

The investment is the clearest signal so far that Toyota president Akio Toyoda is serious about transforming the automaker into a “mobility” company, though a one-time cash drop on another mobility company is a drop in the bucket, considering Toyota’s status as the world’s number one seller of cars and trucks. Still, it’s the largest such investment from the company to date.

In the U.S., General Motors and Fiat Chrysler have much stronger ties to the mobility market. GM invested in ride-hailing company Lyft two years ago, and now owns its own autonomous mobility firm, Cruise. FCA’s partnership with Google-owned Waymo recently saw the tech arm request 62,000 Chrysler Pacifica Hybrids for future ride-hailing duties.

These partnerships also lead to technology sharing, benefitting automakers looking to get a leg up on their rivals. Grab certainly knows a lot about app-based services — besides its preexisting services, the company recently took over Uber’s operations in Southeast Asia.

While Toyota hasn’t described the size of the stake it purchased in Grab, one of its executives will sit on the company’s board.

“A board seat almost guarantees that Grab will buy cars from Toyota,” said Steve Man, a Bloomberg  Intelligence analyst. “The $1 billion that Toyota is paying for a stake is not a high price for selling more cars and whatever other self-driving technologies.”

Grab opened an engineering center in Seattle in 2016, bolstering work performed at its other R&D centers in Singapore and China.

[Image: Toyota]

Get the latest TTAC e-Newsletter!

Recommended

4 Comments on “Grabbing the Future: Toyota Drops a Billion Into Ride-hailing Company...”



Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • Hummer: Jeez, I can’t imagine paying that much for 1 vehicle, $1,900 is what one could expect to pay for about 3-4...
  • geozinger: Fnck. I’ve lost lots of cars to the tinworm. I had a 97 Cavalier that I ran up to 265000 miles. The...
  • jh26036: Who is paying $55k for a CTR? Plenty are going before the $35k sticker.
  • JimZ: Since that’s not going to happen, why should I waste any time on your nonsensical what-if?
  • JimZ: Funny, Jim Hackett said basically the same thing yesterday and people were flinging crap left and right.

New Car Research

Get a Free Dealer Quote

Staff

  • Contributors

  • Timothy Cain, Canada
  • Matthew Guy, Canada
  • Ronnie Schreiber, United States
  • Bozi Tatarevic, United States
  • Chris Tonn, United States
  • Corey Lewis, United States
  • Mark Baruth, United States
  • Moderators

  • Adam Tonge, United States
  • Corey Lewis, United States