Honda invests in Singapore's VC-backed Grab

The agreement will provide a framework for the two companies to collaborate on driver education programs and improvements in traffic congestion and environmental damage in urban areas, with specific focus on Grab's motorbike-hailing operation, according to a statement. Financial terms of Honda's investment in Grab were not disclosed.

Grab has more than 400,000 drivers across six countries in Southeast Asia. The service began in 2012 as taxi-hailing app GrabTaxi, later expanding its business to include private car, motorbike and carpooling services. It claims that 25% of its customers use multiple services. The company is currently testing new services such as last mile and food delivery.

"The ‘sharing economy' that is rapidly expanding all around the world has great potential to broaden the concept of mobility itself," said Shinji Aoyama, operating officer and director at Honda. "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."

Honda joins a roster of investors in Grab whose most significant member is SoftBank, which led a $750 million round of funding for the company earlier this year alongside new and existing backers. The round followed a $250 million investment by SoftBank in 2014. Other investors include Tiger Global Management, GGV Capital and Vertex Venture.

Grab also formed a partnership last year with other ride-hailing apps worldwide including China's Didi Chuxing, India's Ola, and US-based Lyft. The agreement allows the companies to leverage each other's' technology, local market knowledge and business resources so that customers of one service can use the same app to order rides from multiple members.

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• Topics
• Southeast Asia
• Technology
• Consumer
• Expansion
• Singapore
• Transportation
• TMT
• Growth capital