Vay to Launch Teledriven Service in Hamburg - 2022

Vay Secures $95 Million to Advance Teledriven Autonomous Vehicle Services

Vay, a company focused on accelerating the deployment of self-driving technology, has successfully raised $95 million in a Series B funding round. This investment will facilitate the launch of its initial commercial service in Hamburg, Germany, anticipated sometime in 2022.

Innovative Transportation Model

The startup intends to provide a transportation solution where users can request a vehicle delivery to their location. Customers will then operate the car themselves to their desired destination before exiting, allowing a remote operator to handle the parking process.

Investment Details

This funding round saw participation from new investors including Kinnevik, Coatue, and Eurazeo, alongside existing backers such as Atomico, La Famiglia, and Creandum. Additional investors include Project A, Visionaries Club, Signals, Patrick Pichette, and Cristina Stenbeck.

Strategic Expansion Plans

The capital secured will be allocated towards tripling the company’s workforce, with a particular emphasis on expanding the engineering team. This expansion will support the scaling of Vay’s teledrive and driverless technologies, as well as launches in additional cities across Europe and the United States.

Emerging from Stealth Mode

The Berlin-based startup emerged from stealth in September, following two years of development on its teledriven technology. This technology enables remote operators, currently based in Germany and employed by Vay, to remotely pilot vehicles to customers.

Competition in the Autonomous Vehicle Landscape

If the launch proceeds as planned, Vay could be among the first to offer a commercially available “driverless” service in Europe. However, the company faces significant competition in this rapidly evolving sector.

Mobileye and Sixt SE Partnership

Mobileye, a subsidiary of Intel, recently announced a collaboration with Sixt SE to introduce a robotaxi service in Munich, utilizing technology from Moovit, an Israeli transit technology firm. While initially not commercial, this service is slated for expansion throughout Germany and other European nations.

Germany as a Hub for Autonomous Operations

Germany is rapidly establishing itself as a key location for European autonomous operations, driven by legislation enacted in May that permits driverless vehicles on public roads by 2022 without the need for a human safety operator.

A Phased Approach to Autonomy

Vay’s service will initially operate as a teledriven system, progressively integrating autonomous features. The company believes this approach will generate revenue more quickly than alternative strategies while maintaining a high degree of safety.

Teleoperations as a Stepping Stone

While many autonomous vehicle companies aim for fully autonomous commercial launches, Vay’s strategy mirrors that of companies in the robotic sidewalk delivery space, such as Serve Robotics, Coco, and Tortoise, which utilize teleoperations to accelerate market entry.

Data Acquisition and Safety

A Vay spokesperson explained that this approach allows for the accumulation of valuable data, contributing to the development of a safe and informed autonomous driving service. The company intends to automate portions of its mobility stack as soon as its initial fleet is deployed.

Addressing Latency Concerns

Remote operated systems can be susceptible to cellular latency, potentially impacting driver reaction times. Vay has implemented technology to minimize latency, and vehicles are equipped with sufficient autonomy to safely pull over in the event of a delay.

Incremental Feature Rollout

Autonomous features will be introduced incrementally, leveraging data gathered from teledriving operations. For instance, the system may initially handle straightforward tasks like highway driving autonomously, while more complex maneuvers will remain under the control of a remote operator.

Initial Fleet and Expansion Strategy

Vay has not disclosed the size of its initial fleet in Hamburg, but confirmed it will be limited and accessible to a select group of customers. The company plans to gradually expand its operating domain, increase fleet size, and broaden service availability.

Integration with Public Transportation

Vay envisions its service becoming as readily available as popular ride-hailing platforms. The company is actively collaborating with the city of Hamburg and other municipalities to facilitate integration with existing public transportation systems.

User Experience and Vehicle Details

Customers will be able to book a VayCar through the Vay app, resulting in the delivery of a branded electric Kia e-Niro. Vay intends to forge partnerships with other automotive manufacturers as it expands into new cities.

Regulatory Approvals

Vay is currently seeking regulatory approval to launch its service, which may explain the lack of a precise launch date. The company is undergoing final testing and validation with a technical certification authority.

Sensor Technology and Safety Features

Vay’s vehicles will primarily rely on cameras to provide the teledriver with a 360-degree view of the surroundings. Ultrasonic and radar sensors will also be incorporated for enhanced safety features, such as emergency braking systems.

Cost-Effective Approach

Vay has opted not to utilize expensive lidar sensors, which the company claims reduces costs to the thousands of dollars, compared to the tens or hundreds of thousands required by Level 4 autonomous driving companies.

Economic Viability and Unit Costs

The economic viability of this model remains uncertain. Without lidar, achieving Level 4 autonomy – defined as a system capable of driving itself without human intervention – may be challenging. The cost benefits of using teledrivers, each managing only one vehicle at a time, are also unclear.

Teledriver Utilization and Affordability

A Vay spokesperson stated that teledrivers are only actively involved in approximately 33% of a trip, citing an example of five minutes for vehicle delivery, 20 minutes of customer driving, and five minutes for teleparking.

Cost Comparison with Ride-Hailing

“Hence, we can make this much more affordable than ride hailing where a driver is physically bound to the car before, during and after the ride,” the spokesperson explained.

Future Cost Reductions

Vay anticipates that its service will ultimately cost a fraction of existing ride-hailing options, potentially 50% less, and will become increasingly competitive with the cost of urban car ownership as the company scales.