Aioi Nissay Dowa Insurance Co., Ltd, (AD) part of the global MS&AD Insurance Group Holdings Inc., together with Toyota Financial Services (TFS), announced today that it has made a significant investment in the Finnish company, MaaS Global Ltd.
MaaS Global Ltd was established in April 2016 to provide multi-modal transportation services.
Through its ‘Whim’ app, it enables customers to purchase a monthly subscription package that is tailored to their transportation needs (currently this includes public transport, e-hailing and car rental). The app is already operating in Helsinki with plans this year to expand to three other major cities in Europe and then expand to other cities around the Globe.
AD and TFS is investing to explore a co-operation model for multi-modal mobility solutions, including the necessary technology. This investment will help MaaS Global accelerate market entry and build a long term and loyal customer base.
Mr. Yasuzo Kanasugi, President of Aioi Nissay Dowa Insurance Company said: “We are delighted with this joint investment which represents a concreate step in the journey to create sustainable mobility solutions which both meet our customers’ expectations, and enhance their personal safety”.
Mr. Inuzuka, CEO of Toyota Financial Services said: “We are very pleased to partner with MaaS Global and work together on the development of multi-modal mobility solutions. The vision and business model of MaaS Global marries with Toyota’s strategic objective to serve the mobility needs of our current and future customers”.
Mr. Sampo Hietanen, CEO and Founder of MaaS Global Ltd added: “We are really excited to start working with Toyota, and the opportunities our collaboration will bring. We at MaaS Global admire the dedication of Toyota to customer and quality and want to bring the same experience to digital era with our Whim app.”
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1. Who is MaaS Global Ltd?
- A Finnish ‘start up’ mobility company established in April 2016. Its ambition is to become the “Netflix of transportation” by enabling customers to subscribe to a monthly package that is tailored to their transportation needs, and then experience this through a single App called ‘Whim’.
- The technical design of the Whim App enables new modes of transport to be easily integrated into its existing infrastructure. In addition it enables paperless ticketing and a state of the art payment function.
- Currently MaaS Global operates in the city of Helsinki, offering packages which include public transport, taxi, car rental, bikes. Over the next 5 -7 years, MaaS Global have plans to expand to all modes of transport (i.e. “multi modal”) and across multiple cities across the Globe.
- How does it work?
2. What is the purpose of this investment?
- This is a strategic investment and fits into Toyota’s Global and European Mobility Strategy.
- Toyota’s partnerships with Uber and Getaround provided an initial platform for their Mobility Strategy and enabled TFS to collaborate on car and ride sharing, for example the Flex Leasing programs in USA.
- As a further step in Toyota’s strategy, MaaS Global will provide a footprint to explore co-operation models around “multi modal’ transportation services.
3. What are the benefits of this investment?
- The business model and technology of MaaS Global matches TFS’s strategic target to transition from an “asset business to transaction business”. TFS want to attract and retain Toyota customers by understanding their needs, including mobility services and the capability to process payments related to those services.
- More specifically, the co-operation will allow AD & TFS to accelerate developing and testing solutions in the following areas;
- Explore how to integrate the concept of mobility as a service into the value chain,
- Get insight to the transportation behaviour of customers to improve customer retention strategies.
- Provide solutions to process micro payments.
4. How will AD and TFS collaborate with MaaS Global?
- Throughout this year we will explore ways to collaborate, but have identified the following potential areas of synergy;-
- Co-operate across other Toyota mobility projects (i.e. car sharing initiatives such as YUKO and Ha:mo in Europe),
- Explore how to leverage the capabilities of the “Whim” App for current and future customers,
- Integrate into Toyota Fleet Management Strategies, especially in Europe,
- Enable MaaS to leverage AD and TFS traditional finance and insurance capabilities, for example customer care centres for Whim customers.
5. Why did AD and TFS choose to collaborate with MaaS Global?
- Unlike car and ride sharing, the concept of multi-modal transportation services is still in its infancy with a small amount of players in the market. MaaS Global is an early adopter of this business model with leading edge technologies.
- MaaS Global shares the same business philosophy and values; the concern for the environment by reducing congestion, resulting in lower carbon footprint. In addition, the desire to serve and delight customers by offering tailored solutions.
- AD and TFS are confident with the experienced Management Team, including the CEO & founder of MaaS Global, Mr Sampo Hietanen. Mr Hietanen previously held senior Executive positions in civil engineering and a transportation system company.
6. How did AD and TFS identify the investment?
- AD and TFS in Europe identified the investment to support Toyota’s European and Global Strategy.
- MaaS Global received positive global media coverage and awards, including for its “Whim” App.
- During MaaS’ Investment round, prior to expanding to cities, MaaS was seeking a strategic partnership with a respected OEM to complement its existing shareholders, which include public transportation company, bus manufacturer and a vehicle retailer.
7. What is investment and share ratio?
- We would like to refrain from answering this question based on the confidential agreement.
8. When did AD and TFS start considering this project?
- We would like to refrain from answering this question
9. Is there any relationship with TMC Mobility strategy?
- We are working on this project involving relevant departments of TMC