Vay’s Remote Driving Tech Could Secure $410M From Grab
▼ Summary
– German startup Vay will receive $60 million from Singapore’s Grab, with potential for an additional $350 million if joint milestones are met.
– Vay uses remote-controlled technology and human operators to deliver rental cars to customers, currently operating in Las Vegas and planning U.S. expansion.
– The company’s service requires customers to have a driving license to drive the delivered cars, costing about half the price of ride-hailing and eliminating parking concerns.
– Grab sees Vay as serving consumers who prefer not to own cars and plans to explore synergies, particularly in using Vay’s driving data to improve autonomous driving AI models.
– Vay aims to build a global remote driving platform, expanding into commercial services and partnerships, while facing growing competition in the autonomous vehicle sector.
The autonomous vehicle sector is witnessing a significant surge, creating fertile ground for emerging companies to attract substantial funding. German startup Vay, which specializes in remote-controlled car rentals, has secured a $60 million cash investment from Singapore’s tech giant Grab. This initial funding could potentially grow to $410 million if Vay meets specific performance targets within the first year. The agreement, pending regulatory clearance, is anticipated to finalize by year’s end.
Vay’s business model relies on human operators who remotely drive rental vehicles to and from users’ locations. While regulatory hurdles previously delayed its launch in Germany, the company is already active in Las Vegas. The fresh capital from Grab will fuel Vay’s expansion across the United States, where it must achieve certain milestones related to city coverage, regulatory clearances, and customer revenue to unlock further investment.
Competition in the U.S. remote driving market is intensifying. Waymo, owned by Alphabet, recently revealed plans to introduce its robotaxi services in Detroit, Las Vegas, and San Diego. Although Grab is publicly listed on Nasdaq, it does not operate domestically in the U.S. and will focus on supporting Vay’s growth from abroad.
Grab’s CEO Anthony Tan highlighted that Vay addresses a growing consumer segment that prefers access over ownership when it comes to personal transportation. Vay positions its rental service as complementary to fully autonomous robotaxis. Customers using Vay must hold a valid driver’s license, once the car is delivered, they take control and drive it conventionally. A key advantage is that users avoid parking hassles, and the service reportedly costs about half the price of standard ride-hailing.
Beyond U.S. expansion, both companies intend to explore collaborative opportunities in Southeast Asia. Grab’s super-app provides a wide array of services including ride-hailing, food delivery, digital payments, and more. The partnership may also yield technological benefits: driving data gathered by Vay could help train AI models to advance autonomous driving systems.
Vay has broader ambitions than operating a rental fleet. It has already moved into commercial and B2B services and formed a partnership with self-driving truck firm Kodiak Robotics. The company’s long-term goal is to establish a worldwide remote driving platform. Prior to this deal, Vay had raised approximately $131.8 million from investors such as Kinnevik, Coatue, and Atomico. If Grab’s full investment is realized, it would provide a major boost, especially as competitors like Nvidia commit $500 million to UK-based Wayve, signaling a heated race in the driverless technology arena.
(Source: TechCrunch)
