Honda makes "strategic investment" into Grab

Ride sharing provider Grab has signed a memorandum of understanding with Honda Motor to enhance benefits for GrabBike drivers and riders in the countries GrabBike operates in. As part of the partnership, Honda has also made a strategic investment in Grab. However, Grab declined to comment further on the investment figure.

The investment will see an enhancement of the GrabBike user experience for its rapidly growing community of GrabBike drivers and riders by partnering with Honda.

Shinji Aoyama, operating officer and director of Honda added that the collaboration will discuss how more convenient products and services can be offered for the shared goal of resolving issues and challenges facing society in Southeast Asia.”

Aoyama said, “In the midst of the dramatic structural change of the mobility industry, the ‘sharing economy’ that is rapidly expanding all around the world has great potential to broaden the concept of mobility itself.

This news follows the Grab's recent announcement that it raised US$750 million in equity financing, increasing its total capital position to over US$1 billion. SoftBank, a long-term strategic partner to Grab, led an expanded, oversubscribed round, with participation from both new and existing investors.

The companies expect to collaborate driver education programs to promote motorbike safety, efforts to reduce traffic, and environmental congestion in urban areas through ride-share, and other technological advancements.