Vay’s mobile app lets customers request for an EV to be delivered to their location, with the help of a remote driver
[SINGAPORE] Ride-hailing company Grab will invest US$60 million in cash for a minority stake in German remote driving startup Vay Technology, with the possibility of a further US$350 million injection and a majority stake down the road.
The initial investment is subject to regulatory approval and expected to close in the fourth quarter of 2025, Grab announced in a bourse filing on Monday (Nov 10).
Founded in 2018, Vay delivers rental electric vehicles (EVs) to customers using remote drivers. It launched a remotely-driven commercial fleet in Las Vegas in 2024, and has completed “tens of thousands” of trips.
The startup’s mobile app enables customers to request an EV to be delivered to their location, with the help of a remote driver.
When the EV arrives, the remote driver disconnects from the vehicle and the user can then drive it like a regular car. The remote driver resumes control after the trip ends.
Vay claims that this model allows each remote driver to support more customer trips per hour and lower service costs, compared to traditional ride-hailing.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Grab plans to tap its marketing, product development, fleet management and go-to-market expertise to support Vay’s growth in the US, and look into ways that Vay’s service model can complement its mobility services in South-east Asia.
The investment also supports Grab’s autonomous mobility strategy. For instance, the driving data that Vay collects through its fleet could accelerate the training of AI models that improve autonomous vehicles’ perception of the real world, Grab said.
Vay plans to add autonomous driving functionalities into its system, and is on track to expand its fleet this year. Other autonomous driving players Grab has backed include WeRide and May Mobility.
SEE ALSO
Deal terms
Following the US$60 million investment, Vay will issue Grab with new shares and zero-strike warrants – instruments that allow the holder to buy a security at an exercise price of zero.
The warrants will become exercisable subject to the achievement of certain milestones over a three-year period after the deal closes.
The additional US$350 million that Grab plans to invest within the first year after the US$60 million deal closes is subject to financial and operating milestones and regulatory approvals.
The milestones include consumer revenue, US cities covered, technology and safety standards, and the obtaining of regulatory approvals for operating in additional US cities.
The potential additional purchase will consist of new shares as well as shares from existing shareholders. If the milestones are not achieved within the initial one-year period after closing, Grab has the option, but not the obligation, to purchase the additional equity interest.
Assuming there is no share capital change in Vay, these transactions may allow Grab to own a majority equity interest in the startup three years after the US$60 million deal closes. This is if Grab acquires the additional stake and if all warrants are exercisable in accordance with its terms.
