Japanese carmaker Toyota Motor Corp. will invest $1 billion in Grab, a Singapore-based ride-sharing company, to expand the latter's range of online-to-offline services in Southeast Asia.
Grab said Toyota's investment is the biggest on record by an automotive manufacturer in the global ride-hailing sector. Grab will be valued at more than $10 billion after Toyota's investment, a person familiar with the matter told Reuters.
The investment will enable Grab to grow its range of services such as food delivery and electronic payments in Southeast Asia, and Toyota to further integrate its services such as user-based insurance and predictive maintenance with Grab.
One Toyota executive will be appointed to Grab's board and a Toyota employee will be endorsed to Grab as an executive officer.
Toyota shares were up 1.37% as of 10:30 a.m. ET after the investment was announced.
In August 2017, Toyota collaborated with Grab on its ride-hailing services in Southeast Asia with the car maker developing a data-transmission driving recorder that captures and analyzes driving patterns and delivers services to fleet customers.