Automobiles

Toyota invests $1 billion in Southeast Asia ride-hailing company

Toyota on Wednesday announced a $1 billion investment in the Southeast Asian ride-hailing company Grab.

Toyota said the investment is meant to enhance the collaboration between the two companies. Grab will now place an executive for Toyota on its board.

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“This strong partnership will enable us to become the one-stop mobility platform in Southeast Asia. We look forward to executing the same vision of the future,” Grab CEO Anthony Tan said in a statement.

“A future that will provide for safer and more affordable rides, more liveable cities, and millions of new micro businesses in the digital revolution. We will continue to work with global leaders like Toyota in bringing this vision to pass.”

Grab and Toyota began collaborating last August on data services. The ride-hailing company operates in Cambodia, Vietnam, Thailand, Singapore, Myanmar, Indonesia, the Philippines, and Malaysia.

The investment from Toyota comes after Grab announced in March that it had purchased Uber’s Southeast Asia sector, which put Uber CEO Dara Khosrowshahi on Grab’s board. It also provided Uber with a 27.5 percent share in Grab, which also offers ride shares.

“I am delighted that we are strengthening our collaboration, which utilizes Toyota’s connected technologies, with Grab, Southeast Asia’s leading ride-hailing company,” Toyota executive vice president Shigeki Tomoyama said in a statement.

“Going forward, together with Grab, we will develop services that are more attractive, safe and secure for our customers in Southeast Asia.”