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

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.

Von der Leyen Calls for Europe-Wide Push on AI-Powered Cars to Revive Auto Industry

European Commission President Ursula von der Leyen has urged the European Union to embrace an “AI first” strategy for the automotive sector, calling for a coordinated effort to develop self-driving cars made in Europe. Speaking at Italian Tech Week in Turin, the continent’s automotive capital, she argued that artificial intelligence could rejuvenate Europe’s car industry while enhancing road safety and sustainability.

“Self-driving cars are already a reality in the United States and China. The same should be true here in Europe,” von der Leyen said, emphasizing that “AI first” must also mean “safety first.” Her comments reflect growing concern in Brussels about the competitiveness gap between European automakers and tech-led rivals abroad, particularly in the U.S. and China, where AI-driven mobility is advancing rapidly.

Von der Leyen proposed creating a network of European cities to serve as autonomous vehicle pilot zones, noting that 60 Italian mayors have already expressed interest in joining the initiative. She pledged EU support for vehicles “made in Europe, and made for European streets,” positioning AI innovation as a cornerstone of industrial revival and regional independence.

The announcement comes amid intense pressure on Europe’s automotive sector, which employs millions of workers and faces simultaneous demands to decarbonize and digitize. Von der Leyen argued that AI-driven transport could reduce congestion, connect rural communities, and preserve jobs by enabling a new ecosystem of European-designed mobility technologies.

Also speaking at the event were Amazon founder Jeff Bezos, Ferrari and Stellantis Chairman John Elkann, and other global technology leaders—highlighting the deepening link between Silicon Valley innovation and Europe’s manufacturing transformation.

“The future of cars—and the cars of the future—must be made in Europe,” von der Leyen concluded, framing AI not as a threat but as the engine of Europe’s next industrial renaissance.

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

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.