Grab to invest US$60 million in remotely-driven car startup Vay
The ride-hailing provider’s outlay adds to a string of similar investments into mobility startups
[SINGAPORE] Grab Holdings, South-east Asia’s largest ride-hailing provider, is investing US$60 million in remote-driving service Vay to add to its bets in technologies for driverless vehicles.
The funding, which is subject to regulatory approval, could increase to a total of US$410 million within a year after the initial investment if Vay hits certain milestones, the companies said in a joint statement on Monday (Nov 10). The deal is likely to close in the fourth quarter.
Vay’s service is a business model between a regular human-driven taxi and a fully autonomous one. It allows users to order a car, which is then operated remotely and delivered to the customer. Once it’s arrived, the remote operator disconnects and the customer takes over to drive the vehicle where they want to go.
Grab’s outlay adds to a string of similar investments into mobility startups. The ride-hailing and food delivery firm last month put in an undisclosed amount in US-based driverless technology developer May Mobility, and in August said it plans to invest in Chinese robotaxi operator WeRide to offer driverless rides across South-east Asia.
Grab is not the only ride-hailing platform to prepare for a future where driverless rides are the norm.
US counterparts Uber Technologies and Lyft have similarly partnered with technology providers and fleet operators for global deployments, while positioning themselves as platforms that can efficiently inform where robotaxis should be placed to keep them busy.
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Vay, with its main offices in Berlin and Las Vegas, will use funds to scale and expand its operations in the US, while enhancing Grab’s mobility offerings. BLOOMBERG
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