Honda announces strategic partnership with Uber’s rival Grab

Uber's ride-sharing rival in Southeast Asia, Grab has secured second undisclosed investment in this month from Japan's motorcycle manufacturer Honda, after raising an undisclosed investment from financial services firm Tokyo Century.

In a bid to boost Grab’s motorbike ride service, Honda announced a strategic partnership with Singapore's ride-hailing firm today. As a part of the partnership, both the companies have signed a Memorandum of Understanding to work closely specifically in order to enhance benefits for GrabBike drivers and riders in all countries where the service operates.

Details are limited, but the companies say they will “collaborate on driver education programs to promote motorbike safety, efforts to reduce traffic and environmental congestion in urban areas through rideshare and other technological advancements, and other initiatives,” according to a press release.

Honda will focus on areas such as telematics and safety equipment, and it may expand to Grab’s four-wheeled vehicles later, too, according to TechCrunch. “Multiple areas are in discussion, and that will include the sale of bikes to drivers,” a Grab spokesperson told TechCrunch.

Grab provides on-demand transportation services via motorbike, taxis alongside private cars and licensed taxis in six countries in Southeast Asia. Currently, Grab's service is available in 34 cities and it claims over 24 million app downloads and a pool of more than 500,000 drivers. In September, Grab raised a $750 million round led by SoftBank at a valuation of $3 billion.