Remote Driving Company Vay Secures $37M Loan

Remote driving company Vay has secured a loan of $37 million from the European Investment Bank (EIB).

The Berlin-based firm, which launched commercial operations of its teledriving service in Las Vegas, Nevada, earlier this year, intends to use the funds to develop its technology and expand into more cities, in both North America and Europe.

It will also pursue more partnerships with automakers as well as other stakeholders in the remote driving sector.

Vay’s teledriving service differs from what is offered by the driverless cabs run by the likes of Waymo and Cruise.

In Las Vegas, users order a car via the Vay app, which is then delivered – without occupants – to the desired pick-up location. The vehicle is remotely controlled by a human at Vay’s teledrive center, who uses conventional controls such as a steering wheel and pedals.

Once delivered, the customer drives the car to their destination, when the teleoperator takes over again. The connection between car and teleoperator is via cellular network.

“The system offers more sustainable, door-to-door mobility at half the cost of traditional ride-hailing,” according to Vay.  

The company also highlights the fact that there is always a human in control, which avoids some of the legal complexities fully autonomous vehicles face.

Related:New Remote Driving Service Launches in the US

The loan from the EIB, which is a European Union lending institution owned by the member states, is supported by the InvestEU programme, which aims to trigger more than $400 billion in additional investment in new technologies until 2027.

Explaining why the bank was backing Vay, EIB vice-president Nicola Beer said: “This investment once again demonstrates our commitment to supporting European tech pioneers with global ambitions, like Vay. Developed here in Europe, their innovative technology opens up new ways to make passenger and goods transport more efficient while delivering clean, efficient and inclusive urban mobility in our cities.”

Vay COO Thomas von der Ohe said: “We are proud that EIB has decided to invest in Vay as these funds will be instrumental in supporting the company’s growth. We share the same goal and are committed to promoting economic development within the European Union. Moreover, this investment will play a crucial role in strengthening the confidence and trust that EU regulators, partners and consumers have in Vay, paving the way for the commercial rollout of our services in European cities.”

The loan continues a busy period for Vay, after it concluded a deal with Verizon to use its 5G for its Vegas operations, and also signed a memorandum of understanding with the United Arab Emirates’ Bayanat that could see it branch out to the Middle East, Africa and Asia.

Related:Verizon to Power Vay’s Remote Driving Fleet in Las Vegas