TOKYO – Japan’s automaker Toyota Motor and DiDi Chuxing, Uber’s Chinese counterpart, announced on Thursday an agreement to expand their collaboration that includes an investment of $600 million by the Japanese company in the ride-hailing giant.
The two companies agreed to set up a joint venture to develop shared vehicle-related services to build on the collaboration that began between them in Jan. 2018, Toyota said in a statement.
Through the new joint initiative, the companies aim to “to shift to full-scale implementation of services that they have been developing in China” and “provide mobility service solutions that contribute to Chinese society,” according to the statement.
The agreement will also allow Toyota to introduce and promote the widespread use of its battery electrified vehicles in the Chinese market, the Aichi-based Japanese carmaker said in the statement.
“Looking ahead, we will work with DiDi to develop services that are more attractive, safe, and secure for our customers in China,” Toyota Executive Vice President Shigeki Tomoyama said in the statement.
Senior Vice President of DiDi Stephen Zhu said the agreement would allow for “combining DiDi’s expertise in AI-based large-scale mobility operations and Toyota’s leading connected vehicle technology to build a next-generation intelligent transportation framework for sustainable cities.”