Remote-driving startup Vay could raise up to $410 million from Singapore’s Grab

Self-driving vehicles They spend a momentThis makes it easier for small businesses to raise money. Get a loana German startup that offers remote-controlled car rental services, will raise $60 million in cash from a Singaporean tech heavyweight. He catchesThe company announced on Monday.

The deal, which is subject to regulatory approval and is expected to close by the end of the year, could be followed by “an additional $350 million as joint milestones are achieved within the first year,” said Thomas von der Uhe, Vay’s CEO. books He is linkedin.

The Berlin-based startup uses technology and human operators to remotely drive rental cars to and from customers. Vay has not yet been commercially deployed In real traffic in GermanyIt lacked organizational clarity Until recentlyBut the company is currently operating In Las Vegaswhich will take place in January 2024. Vay now plans to use Grab’s investments to scale and expand its operations in the United States.

Vay will need to achieve certain milestones in the US to unlock additional investments from Grab, including the number of US cities covered, regulatory approvals obtained, and total consumer revenue.

The United States is seeing increasing competition and rapidly expanding offerings for various forms of remote driving. For example, Alphabet-owned Waymo recently announced this Deploy its own robotaxi service In Detroit, Las Vegas and San Diego.

Although Grab shares are publicly traded on the Nasdaq, it does not operate in the US, where its business will be limited to supporting Vay’s growth.

However, Fay describes driverless car rentals as a complement to robotaxis. As for Grab, it sees Vay serving “a growing segment of consumers who would rather not be car owners,” Anthony Tan, Grab’s co-founder and CEO, said in an article. press release.

Vay customers may not be car owners, but they still need a driver’s license: once the car is delivered, the user drives it like a regular car. But unlike their own car, they don’t need to find a place to park it. Faye says service costs About half the price of passenger transportation, thanks to this hybrid approach and instrument lighting system.

Meanwhile, the two companies plan to explore synergies between Vay’s and Grab’s businesses in Southeast Asia. Calling itself the “everything everyday app,” Grab is everywhere Super app It offers all-in-one taxis, ride-hailing services, transportation, express grocery shopping, and food delivery options, as well as digital payments and financial services.

With the growing interest in mobility, Grab has recently invested in self-driving technology startups including May navigation Outside the United States and We are riding outside China. The synergy it finds with Vay may be on the technology side — for example, it said the driving data collected by Vay could speed up the training of AI models to improve autonomous driving.

This is also in line with Vay’s vision to become more than just an electric car rental fleet. The company has already expanded Commercial and business Services, closed a partnership With self-driving truck company Kodiak Robotics. Ultimately, the company aims to build a “global remote driving platform,” von der Uhe told TechCrunch earlier this year.

according to CrunchbaseFay has raised $131.8 million from backers including Kinnevik, Coatue, Eurazeo, Atomico, General Catalyst, Creandum, and the European Investment Bank. If it opens fully, Grab’s investment will be a big turbo. But with Nvidia announcing plans to invest 500 million dollars At British self-driving technology startup Wayve, the race is just beginning.