Autonomous vehicle technology is attracting significant investment, creating opportunities for startups like Vay, a German company specializing in remote-controlled rental cars. Vay announced a $60 million cash injection from Singaporean ride-hailing giant Grab on Monday. The deal could potentially swell to $410 million within the first year if pre-determined milestones are met.
Vay operates by using its technology and human operators to remotely drive rental vehicles to and from customers. While still awaiting regulatory clarity in Germany, Vay is currently active in Las Vegas, where it launched in January 2024. Grab’s investment will fuel Vay’s expansion across the United States. To access additional funding from Grab, Vay must achieve specific targets within the first year, including covering more US cities, obtaining necessary regulatory approvals, and demonstrating substantial consumer revenue.
This move comes amidst intensified competition in the remote driving sector within the US. Alphabet’s Waymo, for example, recently announced plans to deploy its robotaxi service in Detroit, Las Vegas, and San Diego.
Although publicly traded on Nasdaq, Grab does not currently operate in the US. Its involvement with Vay will be limited to supporting Vay’s growth in the American market. However, Grab sees this investment as aligning with its wider mobility ambitions. Grab CEO Anthony Tan stated that Vay serves a “growing segment of consumers who prefer not to be car owners,” highlighting the appeal of alternative transportation models.
Vay’s service operates as a hybrid model: customers receive a remotely delivered rental car and take over driving responsibilities once it arrives at their location. This removes the hassle of parking while potentially offering cost savings compared to traditional ride-hailing services, estimated by Vay to be about half the price. Beyond individual consumers, Vay also offers commercial and business-to-business services, recently partnering with self-driving truck company Kodiak Robotics.
Grab and Vay are exploring potential synergies beyond their immediate US collaboration. The Singaporean company, often described as an “everyday everything app,” provides a wide range of services including ride-hailing, food delivery, digital payments, and financial services across Southeast Asia.
Grab has been actively investing in autonomous driving technology globally, supporting startups like May Mobility (US) and WeRide (China). The data generated by Vay’s remote driving operations could prove valuable for training AI models and advancing Grab’s own autonomous driving capabilities. Vay, aiming to become a “global remote driving platform,” sees this partnership as a step towards achieving that goal.
The confluence of investment in remote driving technology and the growing desire for alternative transportation options positions Vay and Grab at an intriguing intersection within the evolving mobility landscape.
