Singapore-based ride-hailing service Grab is in news for another “good” reason. After receiving $750 million from SoftBank in September at a valuation of $3 billion, Japan-headquartered financial services firm Tokyo Century pumped a huge chunk of money into the Southeast Asia-focused cab aggregator. Today the company announced its collaboration with automaker Honda which will witness the latter making an undisclosed, strategic investment in the former.
As a part of the partnership, both the companies have signed a Memorandum of Understanding to work closely specifically in order to enhance benefits for GrabBike drivers and riders in all countries where the service operates. Ming Maa, President of Grab, said,
We welcome Honda as a shareholder and key partner on innovative mobility solutions over the long term as we continue to drive Southeast Asia forward.
Grab has been upping its ante to stand against Uber in Southeast Asia, and it certainly seems keen to increase its efforts in Indonesia where Go-Jek dominates the motorbike taxi service. This makes things clearer: the major focus on GrabBike service via this partnership will take its level a notch higher in Indonesia as well.
The official release adds, Grab and Honda plan to work together to address Southeast Asia’s toughest urban transportation challenges. They will work together on driver education programs to promote motorbike safety, efforts to reduce traffic and environmental congestion in urban areas through rideshare and other technological advancements, and other initiatives. Shinji Aoyama, Operating Officer and Director of Honda, commented,
For the collaboration with Grab, we will discuss how we can offer safer and more convenient products and services for our shared goal of resolving issues and challenges facing society in Southeast Asia.
This is the second deal of its kind post the appointment of former SoftBank executive Ming Man as Grab’s president. Grab offers private car, motorbike, taxi, and carpooling services across six countries and 34 cities in Southeast Asia.Also, it aims to provide the widest variety of locally preferred cashless options – including GrabPay Credits, a proprietary stored value option, credit cards and mobile money – for Southeast Asia consumers with its in-app mobile payments platform, GrabPay.
