One of the world’s largest automobile manufacturers, and certainly one of the most respected companies anywhere on the planet, Toyota has decided to invest heavily in the Uber competitor Grab with a major strategic influx of cash and capital.
According to industry reports, Grab is set to receive a $2 billion injection of funding from Toyota directly, as well as a new funding round that will be opened up in July 2018. Toyota is expected to rope in a number of other major Japanese organizations and Chinese organizations to put close to another $2 billion of capital into the Grab coffers, all in an effort to fight back against Uber and dominate the Asian markets as far as ridesharing is concerned.
Toyota is the latest car company to dive headfirst into the ridesharing industry, which many in the more traditional taxicab industry are seeing has an undercutting of the traditional approach to urban transportation. Volkswagen heavily invested in the Israeli founded Gett with a $300 million investment, and Jaguar spent more than $25 million to invest in Lyft, a huge competitor for Uber in Europe as well as in the United States.
As you can see, however, no other automobile manufacturer has made quite as sizable an investment into a ridesharing company the way that Toyota is. A $2 billion injection of funding is going to provide this company with a tremendous amount of leverage and assets to improve their reach throughout Asia, and many expect that Grab will continue to push into emerging markets like India and Australia more rapidly because of it.
Already Grab offers services in 87 different cities throughout Singapore, Indonesia, the Philippines, Malaysia, Thailand, Vietnam, and Myanmar, but with this investment they should be able to expand operations in Japan, China, Australia, and India before the end of 2018.
Grab had already raised $3.5 billion in a previous run of initial funding, and the company has recently started to expand its base of operations from just ridesharing solutions to its new mobile payment system that is also becoming more widely adapted at a faster rate than expected. This is likely what helped to trigger the investment from Toyota, however Toyota has been looking for a company like Grab to invest funds into ever since it established its Next Technology Fund back in early 2016.
The rise of this ridesharing company has been exponential, as the organization was only established in 2012 but has now been downloaded by more than 55 million people throughout Asia and taking advantage of by more than 2 million drivers.
On top of the injection of capital that Toyota is making available to Grab is a separate partnership with Toyota, providing it with the opportunity to improve its base of operations in a more collaborative sense. Toyota hopes to explore new ways of delivering secure, convenient, and attractive mobility services to fleet customers throughout Southeast Asia, and are expecting to do exactly that with the help of this new Grab partnership that is only going to be expanded upon in the years to come.
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Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like SMRT Is Considering Selling Its Cab Business to Grab and all topics related to Economy and Business, More info about Company Registration Singapore visit our website.
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