The autonomous vehicle sector is currently experiencing significant momentum, which is making it much simpler for emerging businesses to secure funding. On Monday, Vay, a German company specializing in remotely operated rental vehicles, revealed it will receive a $60 million cash injection from Singapore-based tech giant Grab.
This agreement, pending regulatory clearance and anticipated to finalize before year’s end, could be followed by “up to an additional $350 million if certain shared targets are met within the first year,” Vay CEO Thomas von der Ohe shared on LinkedIn.
Headquartered in Berlin, Vay leverages its proprietary technology and human drivers to remotely deliver and retrieve rental cars for customers. The company has not yet launched its service for public use on German roads due to previous regulatory uncertainties, but it is already active in Las Vegas as of January 2024. With Grab’s financial backing, Vay intends to broaden its reach and scale up its U.S. operations.
To access further funding from Grab, Vay must achieve specific benchmarks in the U.S., such as expanding to more American cities, obtaining necessary regulatory permissions, and increasing consumer revenue.
Competition is intensifying in the U.S. market, with a rapid expansion of remote driving solutions. For example, Waymo, owned by Alphabet, recently announced plans to roll out its autonomous taxi services in Detroit, Las Vegas, and San Diego.
Although Grab is listed on the Nasdaq, it does not operate within the United States and will focus solely on supporting Vay’s growth in that market.
Vay positions its driverless rental service as a complement to robotaxi offerings. According to Grab cofounder and CEO Anthony Tan, Vay addresses the needs of “a rising group of consumers who choose not to own cars,” as stated in a press release.
While Vay’s users may not own vehicles, they are still required to have a valid driver’s license: after the car is delivered, the customer drives it as they would any other vehicle. Unlike traditional car ownership, however, users don’t have to worry about parking. Vay claims its model, which combines remote delivery with minimal hardware, allows it to offer prices at roughly half the cost of standard ride-hailing services.
Additionally, both companies are looking to identify collaborative opportunities between Vay’s operations and Grab’s business in Southeast Asia. Grab, which brands itself as “the everyday everything app,” provides a comprehensive platform for taxi rides, ride-hailing, transportation, express grocery delivery, food ordering, digital payments, and financial services.
With mobility solutions gaining traction, Grab has also invested in autonomous vehicle startups such as May Mobility in the U.S. and China’s WeRide. The partnership with Vay could also benefit Grab technologically—for instance, Vay’s driving data could help accelerate the development of AI models for autonomous driving.
This strategy also fits with Vay’s ambition to evolve beyond just an electric rental car provider. The company has already moved into commercial and B2B markets and has formed a partnership with autonomous trucking firm Kodiak Robotics. Ultimately, Vay’s goal is to establish a “global remote driving platform,” von der Ohe told TechCrunch earlier this year.
Crunchbase reports that Vay has previously secured $131.8 million from investors such as Kinnevik, Coatue, Eurazeo, Atomico, General Catalyst, Creandum, and the European Investment Bank. Should Grab’s full investment be realized, it would provide a major boost. However, with Nvidia recently announcing a $500 million investment in UK-based self-driving startup Wayve, the competition in this space is just heating up.
