Grab has won $1bn worth of investment from Toyota in a recent funding round following on from its recent purchase of Uber in south east Asia.
The tech start-up said the investment was the largest-ever by an automotive manufacturer in the global ride-hailing sector which had brought it closer to becoming the one-stop mobility platform in the region.
The Toyota partnership will allow Grab to further expand its range of online to offline services such as GrabFood and GrabPa.
Grab currently operates in 217 cities across eight Southeast Asian countries, offering services such as transport, food and package delivery, mobile payments and financial services, all through its app.
Ming Maa, President of Grab, said: “As a global leader in the automotive industry, Toyota’s investment in Grab is based on their conviction in our leadership in driving the adoption of new mobility solutions and expanding O2O mobile services, such as GrabFood and GrabPay, in the region.
"Grab is the first Southeast Asian technology startup to have achieved run rate revenues of over US$1 billion across an installed mobile base of over 100 million users. Our rapid user and revenue growth is a testament to our ability to hyper-localise, efficiently execute and provide the highest efficiency platform in a region as diverse as Southeast Asia. We are honoured to be supported by industry leaders including Toyota, Uber, Didi and SoftBank.”
As part of the partnership 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.
In March Uber announced it was selling its South East Asia business to Grab amid stiff competition in the region.
In 2016, Uber agreed to sell its operations in China to Didi Chuxing, in a deal reported to be worth $35bn. Before the deal, Uber was burning more than $1bn a year on its Chinese operations, which had become its largest market but was not affording the company any profit.