Vay, a German mobility startup, announced on Tuesday that it had raised US$95 million from investors including Kinnevik, Coatue, and Eurazeo in preparation for the launch of its first car-rental service in Hamburg next year.
A customer could use a mobile app to reserve an electric car, which would be delivered to the pick-up location by a driver who would steer the vehicle remotely. The customer can then drive it normally, while the remote operator switches to steering a different vehicle.
While many companies are testing driverless cars with expensive sensors, Vay uses a variety of cameras and other features to help a person remotely drive a car at a lower cost.
According to co-founder and Chief Executive Officer Thomas von der Ohe, the service will be less expensive for customers than ride-hailing services and will serve as a stepping stone for Vay to gradually introduce fully autonomous features.
Ohe co-founded Vay in 2018 with Fabrizio Scelsi and Bogdan Djukic, and its investors include Atomico, La Famiglia, and Creandum.
Vay currently uses KIA Nero electric vehicles and plans to partner with other automakers.
Ohe stated that the company has the support of the state of Hamburg and is in the final stages of testing and validation before going commercial.
