Toyota Invests $1 Billion in Singapore’s Grab Ride-Hailing Service

June 13, 2018 at 2:00 AM

Toyota Motor Corp. has agreed to invest $1 billion in GrabTaxi Holdings Pte Ltd., southeast Asia’s largest ride-hailing and ride-sharing service, at the end of June.

The deal values the Singapore-based company at $10 billion, according to Bloomberg News. Neither of the two companies has commented on the valuation or indicated the size of Toyota’s stake.

The carmaker will gain a seat on Grab’s board, and a second Toyota manager will become an executive officer of the company.

Last August Toyota invested a smaller amount in Grab as part of a $2.5 billion financing round that included Japan’s SoftBank Group and China’s DiDi Chuxing. The startup, which launched in 2012, also has attracted undisclosed investments or partnerships from Honda and Hyundai.

Bloomberg describes Toyota’s investment as the largest yet by a carmaker in a ride-hailing service. Virtually all major carmakers have formed partnerships and/or invested in similar businesses to prepare for what they expect to be a fundamental reshaping of their industry.