DON’T look now but, hey, what did Toyota do just couple weeks back? It invested massively into Grab, the giant ride-hailing concept that continues to take the world by storm. If that’s not a game changer, I don’t know what is.
Definitely, the $1-billion Toyota investment into Grab is not something to sneeze at. It is yet the boldest business incursion in recent memory into a still relatively new idea—but only the likes of Toyota could take such a gigantic plunge. It is a move unlike no other.
Well, this is the least I can say of Toyota’s collaboration with Grab: It is a strategic investment that will spawn overreaching effects on the total outlook of the new platform on mobility technologies. There is no doubting the wisdom behind the tactical Toyota shift, considering that Grab itself is the leading ride-hailing company in Southeast Asia.
420 million population
DO you know that the region has 420 million people—and the population is growing by leaps and bounds?
Anyway, to be precise, below is the story about the new partnership culled from various worldwide networks:
June 13, Tokyo Toyota Motor Corp. (TMC) announced today that it has concluded an agreement with Grab Holdings Inc. (Grab) to strengthen their existing partnership and expand the collaboration between Toyota and Grab in Southeast Asia to drive further advances in Mobility as a Service (MaaS) across the region.
As part of this agreement, Toyota will invest $1 billion (approximately ¥110 billion) in Grab.
Furthermore, to accelerate decision-making, one Toyota executive will be appointed to Grab’s board of directors and a dedicated Toyota team member will be seconded to Grab as an executive officer, with Toyota considering more personnel exchanges in the future.
Grab in 217 SEA cities
GRAB operates online-to-offline mobile platforms in transportation, food and package delivery, mobile payments and financial services in 217 cities in eight Southeast Asian countries. In March this year, it acquired Uber Technologies Inc.’s Southeast Asian assets, and is now the partner of choice for ride-hailing in the region.
Since August 2017 Toyota and Grab have been developing connected services for Grab utilizing driving data collected by Toyota’s TransLog data-transmission driving recorder. The recorder, developed by Toyota for corporate fleets, has been installed in 100 Grab rental cars. The data collected is stored on Toyota’s proprietary mobility services platform (MSPF), which serves as a form of information infrastructure for connected vehicles. Both companies have already begun collaboration in the field of connected vehicles by, for example, providing driving-data-based automotive insurance for Grab’s rental fleet in Singapore through local insurance companies.
Toyota and Grab’s initial success led them to expand their collaboration. This expansion is aimed at achieving connectivity for Grab’s rental-car fleet across Southeast Asia, and at rolling out various connected services throughout the region that utilize vehicle data stored on Toyota’s MSPF.
In addition, collaborations in driving-data-based automotive insurance, financial services for Grab drivers and maintenance services are also contemplated under the new partnership. Through this new agreement, Toyota and Grab plan to shift into full-scale implementation of services they have been developing to customers in Southeast Asia.
Future mobility service solutions
THE two companies will look for future collaborations aimed to achieve more efficient ride-hailing businesses and for developing future mobility service solutions and MaaS vehicles.
Regarding the latest agreement, Shigeki Tomoyama, Toyota executive vice president and president of Toyota’s in-house Connected Co., said: “I am delighted that we are strengthening our collaboration, which utilizes Toyota’s connected technologies, with Grab, Southeast Asia’s leading ride-hailing company. Going forward, together with Grab, we will develop services that are more attractive, safe and secure for our customers in Southeast Asia.”
Anthony Tan, cofounder and CEO of Grab, also commented: “We are thrilled to have Toyota onboard as a long-term, strategic partner of Grab’s. Toyota is an incredible company that has done so much for the world. 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. 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.”
From today onward, Toyota and Grab will contribute to the creation of the mobility society that delivers comfort and benefit to the people in Southeast Asia, by leveraging the know-how, services and technologies of each company.
PEE STOP More power to Spencer Yu, the former sales and marketing director of Lexus Manila Inc., who was installed last week as president of SMC Asia Cars by new BWM Philippines owner Ramon S. Ang. Dear Spencer has the gargantuan task of regaining BMW’s leadership in the luxury market being alternately controlled by Benz and Lexus in recent years. Cheers and Godspeed, Spencer!
Image credits: Dada R. Mendoza