(Reuters) -Grab Holdings will invest $60 million in remote driving firm Vay Technology, the Singaporean firm said on Monday, sending its shares up more than 6% in premarket trading.
The company is trying to leverage its ride-hailing platform to tap into autonomous vehicles, which are largely seen as the future of mobility and a potential disruptive force for companies such as Grab and Uber.
“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,” Grab CEO Anthony Tan said.
If Vay hits certain milestones, Grab said it would invest $350 million more within the first year.
The milestones include consumer revenue, U.S. cities covered, technology and safety standards, and regulatory approvals for operating in additional U.S. cities.
Vay relies on “teledrivers” to steer its cars to a potential customer, who can then self-drive the vehicle.
The company in January last year launched its first commercial service in Las Vegas.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Anil D’Silva)
Brought to you by www.srnnews.com