A German startup based in Berlin, Vay, announced on Monday that it has received a $60 million investment from Singaporean tech giant Grab. Vay is a company that uses human operators to remotely drive rental cars to and from customers.
Vay's CEO Thomas von der Ohe revealed on LinkedIn that the deal is pending regulatory approval and is expected to be completed by the end of the year. Once the transaction is completed, Vay may receive an additional 350 million dollars in investment within the first year, provided it meets milestones set by both parties.
Expansion into the U.S. Market and Competition
Vay is currently operating in Las Vegas and plans to use Grab's funds to accelerate its scaling in the United States. It is reported that Grab's additional investment will be tied to the number of U.S. cities covered by Vay, the regulatory approvals obtained, and overall consumer revenue. Vay's service is not yet operational in Germany, but it was launched in Las Vegas in January 2024.
The remote driving field is becoming increasingly competitive. Alphabet's Waymo recently announced the launch of autonomous taxi services in Detroit, Las Vegas, and San Diego. Vay positions its remote driving car rental service as a complement to autonomous taxis, using a "lightweight hardware system" and a hybrid model, claiming its service costs about half that of ride-hailing services.
Anthony Tan, co-founder and CEO of Grab, stated that Grab believes Vay's service meets the needs of a growing consumer group that does not want to own a private car. Vay's users need a driver's license, and after the vehicle is delivered, they can use it like a regular car, but without the need to find parking spaces.
Technological Synergy and Global Vision
Although Grab is listed on Nasdaq but has not yet operated in the United States, this investment aims to support Vay's development in the U.S., while exploring business synergies between the two companies in Southeast Asia. Grab is a "super app" company providing integrated mobility, food delivery, and financial services.
Grab sees the main advantage of its collaboration with Vay in the technological aspect: the driving data collected by Vay can accelerate the training of artificial intelligence models, thereby improving the performance of autonomous driving. This vision aligns with Vay's goal of becoming a platform that goes beyond an electric vehicle rental fleet. Vay has expanded its business to commercial and business-to-business services, and has partnered with autonomous truck company Kodiak Robotics. Its ultimate goal is to create a "global remote driving platform."
According to Crunchbase data, Vay has previously raised a total of $131.8 million. If Grab's full investment is released, it will significantly boost Vay's development.
