Singapore-based mobility services provider Grab is investing $60m in cash for a minority position in Germany\u2019s remote-driving startup Vay Technology and may add more capital later.<\/p>\n
Vay builds automotive-grade remote operation systems designed to power new mobility services. Using Vay\u2019s app, customers can summon an electric car that is remotely piloted to their location.<\/p>\n
Once the vehicle arrives, the customer takes control and drives as they would any standard car. At the trip\u2019s end, the rider exits and a remote operator resumes control.<\/p>\n
According to Grab, the funding will help Vay scale up and grow in the US, while bolstering Grab\u2019s own mobility offerings and accelerating its capabilities in autonomous and teleoperated driving over time.<\/p>\n
Vay CEO and co-founder Thomas von der Ohe said: \u201cAs we plan to deploy tens of thousands of shared, electric, driverless vehicles over the coming years, we couldn\u2019t be more excited to have one of the best operators in the world join us on this journey.\u201d<\/p>\n
Grab plans to leverage its strengths in marketing, product, fleet operations, and market entry to aid Vay\u2019s US expansion, and will assess how Vay\u2019s teleoperation model could complement Grab\u2019s services in Southeast Asia.<\/p>\n
Grab added that operational data collected from Vay\u2019s vehicles could accelerate artificial intelligence (AI) model training, improving autonomous systems\u2019 perception in real-world environments.<\/p>\n
Grab CEO and co-founder Anthony Tan said: \u201cWe believe the future of mobility in Southeast Asia will be a hybrid model that relies on the expertise of our driver-partners alongside autonomous vehicles and remote driving services.<\/p>\n
\u201cThis initial investment will help accelerate Vay\u2019s remote driving technology development and create valuable technical and operational synergies for Grab\u2019s long-term mobility strategy. It will also support Vay\u2019s expansion in the US, where they serve a growing segment of consumers who prefer not to be car owners and are looking for more flexible, affordable, mobility options.\u201d<\/p>\n
Grab will hold a minority equity stake at finalisation, with additional options that could lead to majority ownership on a fully diluted basis three years after closing.<\/p>\n
During the first year after closing, Grab can increase its stake by up to an additional $350m, contingent on financial and operational performance, regulatory approvals, and other conditions.<\/p>\n
Any follow-on investment could combine newly issued shares with secondary purchases from existing shareholders.<\/p>\n
The additional funding is tied to goals including consumer revenue thresholds, technology and safety milestones, and approvals to operate in more US cities.<\/p>\n
The parties expect to complete the transaction in the fourth quarter of 2025, subject to regulatory approval and customary closing conditions.<\/p>\n
The deal follows its recent investments<\/a> in WeRide and US-based autonomous vehicle technology developer<\/a> May Mobility.<\/p>\n