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Grab to Invest $60 Million in Remote Driving Startup Vay as It Eyes Autonomous Future

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Grab Holdings announced on Monday that it will invest $60 million in Vay Technology, a remote driving startup, as part of its strategy to expand into autonomous vehicle services. The news sent Grab’s shares up more than 6% in premarket trading.

The Singapore-based company said the investment aligns with its long-term vision to blend traditional ride-hailing with emerging autonomous and remote driving technologies.

“The future of mobility in Southeast Asia will be a hybrid model that relies on the expertise of our driver-partners alongside autonomous vehicles and remote driving services,” said Grab CEO Anthony Tan.

Under the terms of the deal, Grab could invest up to $350 million more within the first year if Vay meets certain milestones — including growth in consumer revenue, expansion across U.S. cities, advancements in technology and safety standards, and additional regulatory approvals.

Vay Technology, founded in Germany and headquartered in the U.S., operates a unique “teledriving” model, where human operators remotely steer vehicles to customers, who then drive the cars themselves. The firm launched its first commercial service in Las Vegas in January 2024, marking a major step toward scalable remote mobility solutions.

Grab’s move underscores the growing race among ride-hailing giants like Uber and Lyft to integrate autonomous and semi-autonomous technologies into their fleets — a shift that could redefine the global mobility industry over the next decade.

Amazon’s Zoox Robotaxi Debuts Free Rides on Las Vegas Strip

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Amazon-owned Zoox has officially opened its robotaxi service to the public in Las Vegas, offering free rides on and around the Strip while awaiting regulatory approval to charge fares. The move positions Zoox against established rivals like Alphabet’s Waymo and Tesla in the race for autonomous ride-hailing dominance.

Key Details

  • Vehicle design: Unlike competitors, Zoox uses a purpose-built, fully autonomous pod with no steering wheel or pedals. Passengers sit facing each other, resembling a futuristic shuttle.

  • Free service: Current rides are complimentary to help familiarize the public and gather feedback.

  • Fleet: About 50 vehicles are in Zoox’s Las Vegas fleet, with thousands of riders each week during its casino-based test loop.

  • Expansion: Zoox plans to extend services soon to San Francisco, with future rollouts in Miami, Austin, Atlanta, and Los Angeles.

Industry Context

  • Waymo already runs paid robotaxi services in multiple U.S. cities with a fleet of around 2,000 vehicles.

  • Tesla operates a small number of robotaxis with safety drivers in Austin and has begun a Bay Area ride-hailing service.

  • Uber is also entering the space, integrating autonomous vehicles into its network through partnerships.

  • Commercializing robotaxis has been tough, with regulatory scrutiny, protests, and high costs forcing many startups to exit the field. Amazon acquired Zoox for $1.3 billion in 2020, betting on the long-term payoff.

Outlook

Zoox expects to begin charging fares within months once it secures regulatory approval. With its unique design and Amazon’s backing, Zoox could emerge as a serious challenger in the still-nascent robotaxi market, provided it scales safely and wins public trust.

Amazon’s Zoox to Expand Robotaxi Production Ahead of U.S. Rollout, FT Reports

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Zoox, the self-driving vehicle subsidiary of Amazon, plans to scale up production in 2025 as it prepares for a broader commercial rollout of its robotaxi fleet across the U.S., according to a report by the Financial Times on Wednesday.

Co-founder Jesse Levinson said the company will open a new facility in California’s Bay Area, significantly expanding beyond its current production site in Fremont. The new location is expected to support Zoox’s goal of producing hundreds—eventually thousands—of custom-built robotaxis.

To date, Zoox has deployed about two dozen purpose-built autonomous vehicles across six U.S. cities. It plans to begin public ride services in Las Vegas this year, with San Francisco to follow.

The expansion comes amid a shift in federal regulatory attitudes toward self-driving technology, as the Trump administration recently signaled plans to ease some vehicle safety regulations and reduce mandatory incident reporting, in an effort to accelerate autonomous vehicle deployment.

Zoox joins a crowded field of competitors in the U.S. robotaxi market, including Tesla, Waymo (owned by Google’s parent Alphabet), and GM’s Cruise. All have faced regulatory scrutiny, with U.S. authorities investigating safety issues related to autonomous driving systems—including vehicles operated by Zoox.