Published By : 30 Aug 2017 | Published By : QYRESEARCH
Toyota Motor Corp., Japan’s biggest car manufacturer is looking to strengthen its position in the ride-sharing business; its decision to invest undisclosed funds in the Southeast Asia’s leading ride-hailing company Grab is testimony to this. Toyota has said that it will collaborate with the company to provide ride-hailing services in the region.
The latest deal between the two companies comes nearly a year after Toyota made an alliance with Uber technologies, buying a small stake in the company as a part of its strategy of exploring new means of revenue. Toyota’s senior managing officer Shigeki Tomoyama said in a statement regarding the new deal that the company is exploring new ways of delivering convenient, secure, and attractive mobility services to fleet customers in the Southeast Asia region through the collaboration.
As the increasing trends of on-demand transportation, automation, and electrification threaten the popularity of the conventional and highly prolific individual car ownership model, automobile manufacturers are looking at ways of working with technology companies and earning revenue from services to drivers. Honda Motor Co., one of Toyota’s key competitors, has also entered the ride-hailing business with investment in Grab, with focus majorly on the company’s motorcycle-hailing segment in the Southeast Asia Region.
Toyota’s Grab investment is sought to come from the 6 bn yen Next Technology Fund set aside by the company for investing in opportunities in the areas of innovative services, products, and technologies. Under the deal, Toyota will record and study the driving patterns in about 100 Grab cars in Singapore and recommend on the kind of connected services it can provide for Grab drivers.