Toyota Motor Corporation (TM - Free Report) is set to invest $1 billion in Grab, the Singapore-based ride-hailing transport service, to bolster the existing partnership to expand mobility services, per Reuters. The investment made by this Japanese carmaker is the largest-ever by a vehicle maker in the global ride-hailing space.
Grab offers ride-hailing, ride-sharing and logistics services in Southeast Asian nations, including Malaysia, Singapore, Thailand and Indonesia. In early 2018, Grab acquired Southeast Asian operations of Uber, the San Francisco, CA-based ride-sharing company. Toyota’s investment will allow Grab to broaden its range of services, including digital payments and food delivery, into the region.
Toyota informed that by strengthening the partnership, it anticipates to achieve connectivity for Grab’s rental-car fleet across Southeast Asia while offering myriad services to the drivers. Alongside Grab, Toyota will develop services that are more secure and lucrative for its customers.
Over the past six months, shares of Toyota have outperformed the industry it belongs to. Over this time period, shares of the company have grown 7.6% while the industry rose 1.4%.
Currently, Toyota carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few other top-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Ferrari N.V. (RACE - Free Report) . While both Oshkosh and Allison Transmission Holdings sport a Zacks Rank # 1, Ferrari has a Zacks Rank # 2.
Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have risen 12.2% over the past year.
Allison Transmission Holdings has an expected long-term growth rate of 10%. Over the past year, shares of the company have gained 11.1%.
Ferrari has an expected long-term growth rate of 17.3%. Over the past year, shares of the company have gained 59%.
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