Toyota Turns to Test A Car-Sharing Service In The U.S.

Toyota

Toyota Motor on Friday stated it has purchased U.S. car-sharing business Getaround.

This move that comes as international car manufacturers look to fortify their existence in new innovation sectors in the middle of growing competitors from transport start-ups.

The world’s biggest-selling car manufacturer validated in an e-mail to Reuters that it has bought the San Francisco-based start-up through its investment fund, Mirai Creation Investment Limited Partnership, however couldn’t provide more information.

Previously on Friday, Japan’s Nikkei paper reported that Getaround was thought to have actually obtained about $10 million from the fund.

Developed in 2015, the fund which likewise consists of Sumitomo Mitsui Banking Corporation (SMBC) as a financier, likewise purchases artificial intelligence and robotics.

Getaround has been running its on-demand car-sharing service in San Francisco, Chicago, Washington D.C., and other U.S. cities from 2013. It states to have over 200,000 members.

Car manufacturers have actually been rushing to partner with tech companies to avoid competitors from self-driving and vehicle sharing services that threaten to ultimately cut demand for vehicle ownership.

Toyota’s financial investment follows comparable moves this year by other car manufacturers who have partnered with vehicle company, consisting of General Motors and Lyft, and Volkswagen and Israel’s Gett.

Toyota currently has a collaboration with Uber Technologies Inc, through which the car manufacturer rents vehicles to Uber motorists, and prepares to deal with the ride-hailing service to speed up mobile innovation research.

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