Loading...

Toyota captures data goldmine, invests $1b in Grab

| Updated: June 24, 2018 14:06:16


Toyota collaborates with Grab to enhance services in Southeast Asia Toyota collaborates with Grab to enhance services in Southeast Asia

By pumping $1 billion into ride-hailing firm Grab, Toyota Motor Corp stands to gain a passenger-side view of tens of thousands of cars across Southeast Asia, tracking how fast they drive, how far they travel and the time they spend stuck in traffic.

The Japanese automaker said it aims to install its TransLog driving recorder devices into Grab’s fleet of lease cars to access the data on driving patterns that will be crucial to its push into the nascent mobility-as-a-service industry.

“Only ride-hailing companies have good, extensive data on usage, so automakers want to be connected with that,” said Egil Juliussen, director of research for automotive infotainment and advanced driver assistance systems at IHS Markit.

Grab already monitors driving behaviour through its app to increase ride safety, sending emails about speed and braking, for instance, to its drivers, such as Singapore’s Rennu Mahajan.

“With this system, it keeps me in check,” said Mahajan, 57.

It will get even more vehicle data with Toyota, which has been harvesting data through TransLog since 2016 in sales and trials with taxi firms and car-hailing operators including Grab. The data gives Toyota insight into fleet management as it develops services including futuristic concepts such as pay-per-use mobile restaurants.

The latest deal, announced last week, gives Toyota access to a single pool of vehicles which potentially eclipses all others. That will allow it to capture a volume of data that would be difficult to collect from private cars which are only used for under 5 per cent of any given day, often on routine commutes.

In return, Grab will be able to expand services such as food delivery and digital payments using Toyota’s $1 billion investment - the biggest by a traditional automaker in a ride-sharing app maker.

The deal reflects how automakers are clamouring for access to ride-hailing firms’ extensive user bases through a spate of partnerships, as they compete with technology companies to develop autonomous cars and next-generation transport services.

Toyota’s vision of such services includes convoys of shuttle bus-sized, self-driving multi-purpose vehicles used, for instance, as pay-per-use mobile restaurants and hotels, which the automaker plans to develop and customise for retail customers.

The data will also help Grab maintain efficiency in fleet maintenance as it expands deeper into Southeast Asia where it operates in over 200 cities. It has said it wants build the region’s largest car rental fleet by the fourth quarter of 2018, reports Reuters.

Share if you like

Filter By Topic