Toyota to invest $600 million in ride-hailing vehicle leasing in China
TOKYO, NNA - Toyota Motor Corp. will invest $600 million in China's Didi Chuxing Technology Co., as part of a broader partnership in leasing Toyota vehicles to drivers in ride-hailing services.
Toyota said in a statement on Thursday that under the arrangement, it, Didi and GAC Toyota would set up a joint venture to provide vehicle-related services to drivers on Didi’s ride-sharing platform.
GAC Toyota, based in Guangzhou, southern China, is a joint venture between Toyota and GAC Group, one of the country’s largest automakers.
The Japanese company didn’t say when the investment will be completed.
Toyota said that the collaboration would allow the two to expand the connected services provided by Toyota's proprietary Mobility Services Platform in its value chain including vehicle management, maintenance, insurance, and financing for customers and drivers.
Toyota has been expanding its partnerships with vehicle-sharing companies, including Uber Technologies, Inc. and JapanTaxi Co.