Singapore: Toyota invests US$ 1 billion in Grab taxi

blackwasp · 20th June 2018, 17:46

Toyota is investing US$ 1 billion in Singapore-based taxi hailing service Grab. As part of the agreement between the two companies, one executive from Toyota will join Grab's board of directors and a Toyota executive will be placed as a full-time executive officer in the start-up.

After this fundraising, Grab has been valued at US$ 10 billion. Toyota's investment is expected be used to expand its food delivery services and the mobile payment platform in South East Asia.

The investment by Toyota is the highest so far by any automaker in any ride-hailing venture. The carmaker is expected to share technologies with Grab, including the one that predicts when a vehicle needs maintenance, driving data based automobile insurance, financial services for Grab drivers and vehicle after sales service.

Grab is not the only such company in which the Japanese carmaker has invested. Back in 2016, it had also invested in Uber.

Grab bought rival Uber's food delivery business in the region last year. Other companies that have invested in Grab include Honda, Hyundai and Toyota's investment arm.

Singapore: Toyota invests US$ 1 billion in Grab taxi-001_en_2.jpg

Link to the Team-BHP News

itwasntme · 20th June 2018, 19:27

Glad to hear!

Have used Grab in Singapore and Thailand extensively with charges billed seamlessly to my India credit cards.

While Grab currently may not have the extensive Uber 'AI' advantage gained from years of data, the overall experience is great.

vb-saan · 21st June 2018, 08:33

Quote:

Originally Posted by blackwasp

Toyota is investing US$ 1 billion in Singapore-based taxi hailing service Grab.

Good for Toyota and probably good for Grab as well – effectively they get access to the enormous amount of data held by Grab.

Quote:

Originally Posted by blackwasp

Grab bought rival Uber's food delivery business in the region last year.

Not just the food delivery arm, Grab has effectively wiped off Uber from the scene in SE Asia. Lack of competition is not so good for the customer though.

Flyer · 21st June 2018, 08:52

Quote:

Originally Posted by vb-san

Not just the food delivery arm, Grab has effectively wiped off Uber from the scene in SE Asia. Lack of competition is not so good for the customer though.

Yes, Grab has taken control of the entire operations of Uber in SE Asia. It is now the single major player in the region enjoying a huge monopoly.

GTO · 21st June 2018, 10:08

All car manufacturers are petrified of the sweeping changes to the automotive landscape. And they don't want to miss out on the action. This is just Toyota's way of getting their foot in the door. In the short-term, Grab will have more Toyotas in its fleet? Toyota will get their hands on a lot of data too.

I think it's a daring move from a company known for its traditional thinking and very slow reaction times. Equally, I hope such investments don't stop these new companies from innovation - can you imagine IOCL taking a stake in Ather Energy? That's a conflict right there.

Was reading elsewhere about how CAAS (Car As A Service) is poised to offer much fatter profit margins (20 - 30%) compared to the manufacturing sector's single digit percentages. Everyone wants a piece of the pie.

IMHO, the 10 years from 2015 to 2025 are going to redefine the car scene more than any decade in history.

20th June 2018, 17:46	#1
blackwasp Senior - BHPian Join Date: Apr 2015 Location: Navi Mumbai Posts: 2,974 Thanked: 26,325 Times View My Garage	Singapore: Toyota invests US$ 1 billion in Grab taxi Toyota is investing US$ 1 billion in Singapore-based taxi hailing service Grab. As part of the agreement between the two companies, one executive from Toyota will join Grab's board of directors and a Toyota executive will be placed as a full-time executive officer in the start-up. After this fundraising, Grab has been valued at US$ 10 billion. Toyota's investment is expected be used to expand its food delivery services and the mobile payment platform in South East Asia. The investment by Toyota is the highest so far by any automaker in any ride-hailing venture. The carmaker is expected to share technologies with Grab, including the one that predicts when a vehicle needs maintenance, driving data based automobile insurance, financial services for Grab drivers and vehicle after sales service. Grab is not the only such company in which the Japanese carmaker has invested. Back in 2016, it had also invested in Uber. Grab bought rival Uber's food delivery business in the region last year. Other companies that have invested in Grab include Honda, Hyundai and Toyota's investment arm. Link to the Team-BHP News Last edited by blackwasp : 20th June 2018 at 17:49.
	(4) Thanks

20th June 2018, 19:27	#2
itwasntme Distinguished - BHPian Join Date: May 2007 Location: BANGALORE Posts: 6,977 Thanked: 12,532 Times View My Garage	Re: Singapore: Toyota invests US$ 1 billion in Grab taxi Glad to hear! Have used Grab in Singapore and Thailand extensively with charges billed seamlessly to my India credit cards. While Grab currently may not have the extensive Uber 'AI' advantage gained from years of data, the overall experience is great.
	(1) Thanks

21st June 2018, 10:08	#5
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,512 Thanked: 300,697 Times View My Garage	Re: Singapore: Toyota invests US$ 1 billion in Grab taxi All car manufacturers are petrified of the sweeping changes to the automotive landscape. And they don't want to miss out on the action. This is just Toyota's way of getting their foot in the door. In the short-term, Grab will have more Toyotas in its fleet? Toyota will get their hands on a lot of data too. I think it's a daring move from a company known for its traditional thinking and very slow reaction times. Equally, I hope such investments don't stop these new companies from innovation - can you imagine IOCL taking a stake in Ather Energy? That's a conflict right there. Was reading elsewhere about how CAAS (Car As A Service) is poised to offer much fatter profit margins (20 - 30%) compared to the manufacturing sector's single digit percentages. Everyone wants a piece of the pie. IMHO, the 10 years from 2015 to 2025 are going to redefine the car scene more than any decade in history.
	(4) Thanks