Largest OEM investment in ride-hailing ever

Toyota has announced a $1 billion investment in Singapore based ride-hailing provider Grab, underlining the Japanese OEM’s intentions to play a major role in future mobility.

Testing since 2017

Toyota and Grab know each other very well. Already in August 2017, they reached an agreement to learn from each other. Toyota installed data recorders (the so-called TransLog data-transmission driving recorder) in 100 Grab vehicles. The data were stored on Toyota’s proprietary platform for mobility services, which is the brain behind the OEM’s connected vehicle program.

Objectives

With the collaboration, both parties aim to achieve a one-stop mobility platform, initially for the South-Asian market. This includes a multitude of concrete programs

• Data Recorder. Eventually, the data recorder will be installed in all Grab vehicles across SEA, which will allow Toyota to collect information about user behaviour, occupancy, idle times and car usage. This data can help Toyota develop further services in the mobility and connected vehicle arena.
• Finance products. By using Toyota Financial Services’ offering, Grab can design interesting programs for its drivers, who now have to find a way to finance their cars themselves or use one of the existing Grab partners to lease a car. The integrated solution OEM – Bank – Ride Hailing provider can significantly drive down the main cost for the driver: the car.
• Automotive Insurance. The collected data allow to finetune the Grab drivers’ insurance coverage and consequently find the most appropriate insurance partner at the best pricing. Insurance being one of the key factors in price setting of ridehailing services, this might create a competitive advantage for Grab moving forward.
• Maintenance. Obviously, Toyota intends to increase its market share in the ridehailing sector. In addition to an attractive finance and insurance offering, the Grab drivers will benefit from maintenance programs rolled out across the Toyota dealer network.
• e-Palette. Toyota has introduced its flexible and multi-purpose e-Palette at CES Las Vegas. This “vehicle” is an autonomous platform that can be used for virtually anything, going from people transport to goods transport. Multiple e-Palettes can even be joined to form a train-like unit, capable of replacing a bus or a truck/trailer. Toyota and Grab will be looking into using the e-Palette for taxi services.

Popular Grab cars in SEA

Today, the most popular cars for Grab drivers (depending on the country) are

• Toyota Corolla. Very popular with Grab drivers due to its reliability and low maintenance cost. Most often, the vehicles used are older, MY2000 versions, but drivers tend to replace them with the same updated version rather than going for other brands.
• Honda Civic. The carlover Grab driver likes the Civic for its agility and its fuel economy.
• Ford Fusion (the “Mondeo” in European markets). Especially appreciated by the consumers, who appreciate its spaciousness and smooth ride.
• Hyundai Sonata (popular with Singapore taxi companies). A valuefor-money choice for the Grab drivers. Cheap, spacious and relatively economic.
• Toyota Highlander Hybrid. This SUV is the preferred car for drivers who venture outside of city streets and need to drive passengers around on country roads or less easy environments. The combination of its size, clearance and fuel economy compensates for its higher pricing.
• Toyota Prius. This alltime classic for taxi and ride hailing service provider offers impressive fuel economy in city traffic whilst offering a big cargo space and enough room for 3 people on the back seat

Board seats

Toyota will appoint an executive to join Grab’s board and a second Toyota person will be seconded to Grab as an executive officer. More exchange of staff is to come.

Toyota’s EVP, Shigeki Tomoyama, was delighted with the collaboration: “Going forward, together with Grab, we will develop services that are more attractive, safe and secure for our customers in Southeast Asia.” From Grab’s perspective, the collaboration also has a community enforcing benefit: “A future that will provide for safer and more affordable rides, more liveable cities, and millions of new micro businesses in the digital revolution.”