Toyota said Wednesday it was investing $1 billion in Asia ride-share company Grab, as the Japanese automaker looks to expand beyond its core business into the "mobility" sector. Grab, which is headquartered in Singapore, is a leading player in the ride-share industry in Asia, and earlier this year agreed to acquire US giant Uber's regional operations.
In a statement, Toyota said the deal "is aimed at achieving connectivity for Grab's rental car fleet across Southeast Asia, and at rolling out various connected services throughout the region that utilise vehicle data" stored by Toyota. Toyota will place one of its executives on Grab's board, and a second Toyota team member will serve as an executive officer at the company, which Toyota called the "partner of choice for ride-hailing in the region."
The investment comes as Toyota works to adapt to what company president Akio Toyoda calls "profound change" in the industry. Last month, Toyoda pledged to transform the auto giant to meet a "once-in-a-century challenge."
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