Grab's success lies in its user-centric platform in S-E Asia

THE world's largest carmaker, Toyota, will invest US$1 billion in South-east Asian ride-sharing app Grab. This will be the second major move for Toyota, after forming a strategic alliance in 2016 with Uber, where they decided to co-develop autonomous driving technology.

The rise of Grab, culminating in this latest investment by Toyota, has been exceptional. It's exceptional because Grab, which first launched its service with 40 drivers in Kuala Lumpur in 2012, was late to the ride-sharing game, coming only after Uber had already established a formidable position in the United States. Grab has since toppled Uber in South-east Asia in March this year, when Uber sold out its operations in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

How do we explain the rise of tiny Grab against giant Uber, and the attraction for carmaker stalwart Toyota?