Toyota will buy a $1 billion stake in Southeast Asia’s ride-hailing startup Grab, the latest move by carmakers to get a stake in booming transportation services.
As part of the deal, the largest ever by a carmaker in ride hailing according to Grab, Toyota will get a seat on the board of Grab.
Toyota joins Japan technology conglomerate SoftBank and Chinese ride-hailing giant Didi Chuxing as investors in the six-year-old company. Grab acquired Uber’s business in the region after a costly battle, but now faces local rival Go-Jek, which is backed by Tencent, among others. Grab will use the money to keep expanding beyond ride hailing into other services such as food delivery and digital payments, the company said.