German startup Vay secures $60 million funding from Grab to scale remote-controlled rental car operations

German startup Vay, specializing in remote-controlled rental cars, has secured a $60 million investment from Singaporean tech giant Grab, with the possibility of an additional $350 million upon meeting certain milestones. Vay's technology allows human operators to remotely drive rental cars to and from customers, with current operations in Las Vegas. The funding will be used to expand operations in the U.S., with plans to unlock additional investment from Grab based on specific milestones.

This investment comes amidst increasing competition in the U.S. for remote driving services, with Alphabet-owned Waymo expanding its robotaxi service. While Grab does not operate in the U.S., it sees Vay as complementary to its business and aims to support Vay's growth, particularly in catering to consumers who prefer not to own cars. 

Vay's service, which costs approximately half the price of ride-hailing, allows customers to take over and drive the rental car once delivered, eliminating the need to find parking. Additionally, Vay and Grab plan to explore synergies in Southeast Asia, leveraging Grab's extensive super-app that offers various transportation and delivery options, digital payments, and financial services. The collaboration aligns with Grab's recent investments in autonomous driving tech startups and Vay's vision to evolve into a global remote driving platform, expanding beyond electric rental car fleet to commercial and business-to-business services.

Vay has previously raised $131.8 million from various backers, including Kinnevik, Coatue, and General Catalyst. The investment from Grab is poised to significantly enhance Vay's growth as the competition in the self-driving tech industry intensifies.

Read more about the funding here.