Photo: Reuters
Photo: Reuters

Honda invests in ride-hailing service Grab

Deal that involves collaboration on the Southeast Asian motorbike-hailing service Grab is the latest auto industry tie-up of its type

December 12, 2016 11:10 AM (UTC+8)

The Southeast Asian ride-hailing service Grab said on Monday it had secured investment from Japanese carmaker Honda as part of a deal to collaborate on its motorbike-hailing service.

In the latest auto industry tie-up of its type, Grab said Honda had agreed to invest an undisclosed amount in the firm, and that the two companies would form a partnership to develop the ride-sharing technology and related driver education programs.

Automakers such as Volkswagen, Toyota and General Motors also have tie-ups with ride-sharing firms to hedge against a shift in the vehicle market away from private ownership.

Grab, the biggest rival to the ride-sharing service Uber in Southeast Asia, raised US$750 million in a funding round in September. A source familiar with the matter said the round valued Grab at more than US$3 billion.

Earlier this month, Grab, whose services include taxi and motorbike-hailing, car-pooling, delivery and mobile payments, announced that the Japanese financial services company Tokyo Century Corp had made a strategic investment in the firm for an undisclosed amount.

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