Oct 18, 2024

German remote-driving startup Vay secures EUR 34 million in EIB funding LONDONReported By: Wion Web DeskUpdated: Oct 17, 2024, 02:11 PM IST View in App Berlin-based Vay receives substantial EU backing to revolutionise transportation with remote-driving technology. German remote-driving startup Vay has announced securing EUR 34 million (USD 37 million) in funding from the European Investment Bank (EIB). This financial boost is earmarked for the expansion of Vay's innovative remote-driven vehicle technology across Europe and the growth of its development team. The funding, characterised as a low-interest, long-term, preferential loan, represents a strong vote of confidence from the EIB in Vay's potential to transform the transportation landscape. CEO Thomas von der Ohe outlined the company's plans to leverage this capital for launching commercial services in strategic European locations. Vay is currently deliberating between Hamburg, where it has already conducted extensive testing, and Belgium, where it has forged a partnership with car-share provider Poppy, as the launchpad for its European operations. This decision will mark a crucial step in the company's expansion beyond its initial commercial service in Las Vegas, which began earlier this year. The Las Vegas operation showcases Vay's core technology: a system where "tele drivers" remotely operate electric short-term rental cars. These skilled operators, stationed at dedicated teledrive centres, use sophisticated setups featuring steering wheels, pedals, and other vehicle controls to navigate cars in real-time. The cars are equipped with advanced camera sensors that transmit real-time visual data to the tele drivers' screens, enabling precise control from a distance. Vay's innovative approach has already demonstrated its economic viability in the competitive ride-sharing market. Von der Ohe reported that their service in Las Vegas, currently operating with a fleet of 20 cars, offers rides at half the cost of traditional ride-hailing services like Uber. The company is now in the process of expanding its Las Vegas fleet to 100 vehicles, signalling strong demand and operational success. The startup's financial trajectory has been impressive, with approximately $110 million raised from a roster of high-profile investors including Sweden's Kinnevik, Coatue, and France's Eurazeo. This latest EIB funding further solidifies Vay's position as a frontrunner in the remote-driving technology sector. Looking ahead, Vay has ambitious plans that extend beyond its current car-sharing focus. The company is exploring applications of its remote-driving technology in the trucking industry and has established a partnership with Stellantis unit Peugeot to adapt the technology for delivery vans. This diversification strategy underscores the versatility and potential widespread applicability of Vay's core technology across various transportation sectors. While many in the automotive industry are focused on developing fully autonomous vehicles, Vay is taking a different approach. The company plans to gradually introduce self-driving features to its fleet, leveraging the wealth of data collected by the cameras installed on its vehicles. This approach, which relies on more cost-effective camera technology rather than the expensive lidar and radar systems favoured by most autonomous vehicle developers, could provide Vay with a significant competitive advantage. Von der Ohe expressed a strong belief in the potential of remote driving technology as an intermediate step towards full autonomy. "We believe remote driving is the next frontier technology that can really revolutionise all aspects of transportation without any autonomy," he stated, highlighting the immediate practicality of their solution compared to the still-distant reality of truly self-driving cars. This substantial EIB funding not only provides Vay with the capital needed for expansion but also lends credibility to its innovative approach to solving transportation challenges. As the company prepares to roll out its services across Europe, it stands poised to disrupt traditional transportation models and potentially reshape urban mobility.