SEOUL, Feb. 2 (Korea Bizwire) — Samsung Electronics Co. said Friday that it has signed a multi-year memorandum of understanding (MOU) with Singapore-based ride-hailing firm Grab in a push to make inroads into one of the fastest growing Internet service sectors across Southeast Asia.
The South Korean tech giant said it and Grab will develop customized solutions for the ride-hailing industry, including micro-financing schemes for Grab’s over 2.3 million driver-partners, improved customer booking and in-car experiences, and new mobility solutions.
The two firms will also work together to expand into Southeast Asia’s fragmented mobile payments ecosystem and provide a mobile payments solution that will serve the needs of consumers in Southeast Asia.
Lee Sang-chul, who is charged with overseeing Southeast Asia and Oceania at Samsung Electronics, said Samsung is excited to be partnering with Grab to provide consumers in the region an enhanced array of digital solutions for their everyday needs.
“Through this collaboration, we hope to explore how we can work together to tap into the massive growth opportunity of Southeast Asia’s digital economy,” Lee said in comments posted on the company’s website.
Grab co-founder and group CEO Anthony Tan said mobile technology can bridge the infrastructural divide and make economic growth more inclusive in the world’s fastest growing emerging markets.
“We’re thrilled to partner with (Samsung) to empower more people in Southeast Asia to improve their livelihoods and provide more digital services for everyone on the Grab platform,” Tan said in comments posted on Samsung’s website.
Grab operates the largest transportation network in Southeast Asia and is one of the most frequently used mobile platforms in the region with over 3.5 million daily rides, according to Samsung.
The ride-hailing industry is expected to be a US$25 billion market by 2022 in Southeast Asia.
Hyundai Motor Co., South Korea’s biggest carmaker by sales, said last month that it invested in the Southeast Asian ride-hailing firm Grab for a possible business partnership in the transportation service sector.
The carmaker didn’t provide the exact value of its investment in the Southeast Asian rival to Uber Technologies Inc.