This is the biggest investment to date by an automaker in the global ride-hailing sector.
On Wednesday, Toyota Motor Corp stated it has agreed to invest $1 billion Grab, a Southeast Asian ride-hailing firm, as its lead investor in its current funding round which was launched after it bought Uber Technologies’ regional business.
Toyota’s move assumes significance since it is the biggest-ever by an automaker in the global ride-hailing sector, said Grab in a statement.
The newly acquired funds will enable Grab to expand and consolidate its array of service, ranging from online to offline, including digital payments and food delivery, in Southeast Asia.
Grab also stated, an executive from Toyota will be appointed to its board of directors and another executive from Toyota will join Grab as an executive officer.
Incidentally, Toyota’s trading arm has previously invested in Grab, with other investors in the ride-hailing company being China’s Didi Chuxing and Japan’s SoftBank Group Corp.