Toyota and SoftBank form mobility services joint venture
Carmaker looks to partner with technology groups to prepare for self-driving era
Toyota will form a joint venture with SoftBank to develop mobility services, as Japan’s largest carmaker looks to deepen its links with technology groups to adapt to the era of autonomous driving.
The automaker has attempted in recent years to break out of traditional business groupings and alliances, looking to partner with technology companies such as Uber and Amazon to find ways of making money beyond manufacturing and delivering vehicles.
The latest partnership will combine Toyota’s connected vehicle technology with SoftBank’s platform for the internet of things, with the longer term aim of providing transport, delivery and logistics services using autonomous vehicles.
Earlier this year, SoftBank invested $2.25bn in Cruise, GM’s self-driving car unit, through its Saudi-backed $100bn Vision Fund. On Wednesday, Cruise secured another $2.75bn from Japanese carmaker Honda.
Masayoshi Son, SoftBank’s chief executive, has previously warned that cars will become “a commodity”, saying service providers such as Uber will play a crucial role in transport.
“This is a very unusual partnership. But . . . we decided to pair up with the hope that this Japan alliance can compete globally,” said Junichi Miyakawa, chief technology officer at SoftBank.
Shigeki Tomoyama, executive vice-president at Toyota, said it approached SoftBank because of its links to technology companies, especially ride-hailing providers. SoftBank has stakes in Uber, Didi Chuxing, Grab and Ola, which are seen as essential to Toyota’s vision for developing mobility services using autonomous vehicles.
Toyota is working on its own autonomous technology through the Toyota Research Institute, its artificial intelligence division, and has looked to partnerships to become a provider of mobility services to consumers.
At the Consumer Electronics Show in January, Toyota also said it would develop a driverless shuttle for both passengers and deliveries in partnership with Uber, as well as other companies including Amazon, Didi and Pizza Hut.
In August, the company also disclosed a $500m investment in Uber.
Shares in Toyota and SoftBank rose as much as 2.2 per cent and 3.3 per cent, respectively, on news of their joint press conference.
Toyota has historically had closer ties with KDDI, the Japanese telecoms group that is a SoftBank rival. Shares in KDDI fell 1.24 per cent shortly following the announcement of the deal.