Japanese automaker Honda has invested an undisclosed sum of money in Singapore-based Grab Taxi, a ride-sharing service popular in South East Asia, to help it fend of Uber's rising popularity in the region.
Honda's investment in Grab Taxi comes over six months after Toyota announced that it was investing in Uber to help get more drivers on the app-based ride-sharing service.
Honda's investment in Grab Taxi could help the Singaporean company compete in the market for motorcycle-hailing services in Southeast Asia especially in Indonesia where the ride-sharing market is expected to grow from $800 million (Rs 54.05 billion) last year to $5.6 billion (Rs 378.38 billion) by 2025.
The investment also allows Honda, the world's largest motorcycle manufacturer, an entry point into Indonesia's ride-sharing market
Honda's investment in Grab Taxi comes less than two weeks after Grab unveiled a tie-up with Japan's top car-leasing company, Tokyo Century Corp. Tokyo Century Corp. had in September taken part in extended F-Series funding round in Grab lead by Japan's Softbank.
The funding round raised $750 million (Rs 50.66 billion) and ended up valuing Singapore's Grab Taxi at $3 billion (Rs 202.67 billion).