Singapore-based technology conglomerate Grab is set to invest as much as $410 million in Vay, a German startup specializing in remote-controlled car rentals. The deal, announced Monday, begins with an initial $60 million cash investment, with up to $350 million more contingent on performance milestones during the first year. Vay CEO Thomas von der Ohe shared details of the agreement in a LinkedIn post, noting that regulatory approval is still pending and the transaction is expected to close by year-end.
Founded in Berlin, Vay operates a service that allows cars to be delivered and retrieved remotely by human operators using teleoperation technology. Once a car arrives, customers drive it themselves like a regular rental. The company’s model eliminates the need for car ownership and parking while offering prices that Vay says are about half the cost of ride-hailing.
Vay launched commercial operations in Las Vegas in January 2024 after delays in Germany caused by regulatory uncertainty. The startup plans to use Grab’s investment to scale its U.S. operations, expand into additional cities, and pursue further regulatory approvals. The deal’s milestone-based funding structure is tied to Vay’s progress in the U.S., including geographic expansion, compliance milestones, and revenue growth.
Although Grab is listed on the Nasdaq, it does not operate directly in the U.S. Its involvement will focus on supporting Vay’s growth abroad and exploring potential collaborations in Southeast Asia, where Grab runs one of the region’s dominant super-apps. The company’s ecosystem spans ride-hailing, logistics, payments, food delivery, and financial services.
Grab co-founder and CEO Anthony Tan described the partnership as an opportunity to serve consumers “who prefer not to be car owners,” aligning with both companies’ long-term focus on flexible mobility solutions. Grab also highlighted the potential for Vay’s driving data to improve AI models used in autonomous driving, complementing Grab’s ongoing investments in self-driving technologies such as May Mobility in the U.S. and WeRide in China.
For Vay, the investment strengthens its position in the fast-evolving remote driving and autonomous vehicle market. The company has already expanded into commercial and business-to-business services, including a partnership with self-driving truck developer Kodiak Robotics. Its broader ambition, von der Ohe told TechCrunch earlier this year, is to build a global remote driving platform capable of linking human teleoperators and AI systems.
Vay has raised $131.8 million to date from investors including Kinnevik, Coatue, Eurazeo, Atomico, General Catalyst, Creandum, and the European Investment Bank, according to Crunchbase. If all milestone payments from Grab are met, the total funding would significantly increase the company’s financial runway at a time when competition in autonomous mobility is intensifying.
The investment follows a surge of funding in the self-driving sector, with companies such as Waymo expanding its U.S. robotaxi services and Nvidia recently announcing a $500 million investment in British self-driving startup Wayve.
Featured image credits: Freepik
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