SINGAPORE -- Ride-hailing operator Grab will accept a $1 billion investment from Japan's Toyota Motor, as the Singapore-based company widens its business fields, the two companies announced on Wednesday.
The agreement follows Grab's recent acquisition of Uber Technologies' Southeast Asian business, which enabled Grab to become the region's dominant player. Grab will likely use the investment to expand into newly focused areas, such as food delivery, mobile payments and financial services.
"This strong partnership [with Toyota] will enable us to become the one-stop mobility platform in Southeast Asia," Anthony Tan, CEO of Grab, said in a press release. "We will continue to work with global leaders like Toyota in bringing this vision to pass."
Grab has attracted investments from several major global companies, including SoftBank Group of Japan and Didi Chuxing of China. California-based Uber, in exchange for its Southeast Asian operations, acquired a 27.5% stake in Grab.
According to Wednesday's announcement, the two companies will collaborate in areas such as financing programs, insurance, maintenance and internet-connected cars. Grab will also accept one board member and one executive officer from Toyota under the agreement.
Toyota, through the investment, will also aim to capitalize on Grab's drivers and riders' network to expand its businesses in Southeast Asia. Grab and Toyota had said last August that they would cooperate on internet-connected cars.