Toyota invests in Uber

The logo for Uber is shown on a vehicle in San Francisco, California May 7, 2015.REUTERS/Robert Galbraith/File Photo

The logo for Uber is shown on a vehicle in San Francisco, California May 7, 2015.REUTERS/Robert Galbraith/File Photo

Published May 25, 2016

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Toyota and Volkswagen announced separate partnerships on Tuesday with rideshare companies Uber and Gett, in the latest such moves by major carmakers.

Toyota and Uber said they had entered into a memorandum of understanding to explore collaboration, starting with trials in countries where ridesharing is expanding.

Toyota’s senior managing officer, Shigeki Tomoyama, said in a joint statement: “Through this collaboration with Uber, we would like to explore new ways of delivering secure, convenient and attractive mobility services to customers.”

The deal includes a strategic investment by Toyota and its Mirai Creation Investment arm, although no figure was disclosed.

Also read: Carmakers adapting to new mobility era

The partnership will create new leasing options, enabling customers to lease their vehicles from Toyota and cover their payments with what they make as Uber drivers.

Toyota and Uber are also exploring collaboration on developing in-car apps and setting up a program to sell Toyota and Lexus vehicles to Uber.

Uber chief business officer Emil Michael said: “Toyotas are among the most popular cars on the Uber platform worldwide and we look forward to collaborating with Toyota in many ways in the future.

‘Gett’ing a piece of the action

Meanwhile, Volkswagen said it had made a $300 million (R4.65 billion) strategic investment in Uber competitor Gett, which has a presence in more than 60 countries worldwide including London, Moscow and New York.

“The ride-hailing market represents the greatest market potential in on-demand mobility,” it said, “while creating the technological platform for developing tomorrow's mobility business models.”

Shahar Waiser, Gett founder and chief executive Shahar Waiser said the company “provides Volkswagen with the technology to expand beyond car ownership to on-demand mobility for consumers and businesses”.

Toyota and Volkswagen are not the first carmakers to link up with rideshare apps; in March, General Motors and Lyft unveiled a joint car rental service for drivers, a move aimed at boosting the number of vehicles available for the Uber rival.

AFP

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