The Peugeot e-3008 electric vehicle is on display at the Stellantis automotive factory in Sochaux, France.
Arnold Finister | AFP via Getty Images
PARIS, France — French auto giant Peugeot told CNBC this week that it is working with German mobility startup Vay to integrate so-called “tele-driving” technology, an alternative to self-driving cars, into its vehicles.
Through this transaction, the two companies will evaluate the use of Vay’s remote driving technology on “last mile delivery” trucks and small logistics vehicles, with a focus on business-to-business (B2B) customers.
The idea is to recreate the journey a delivery vehicle typically takes from an order fulfillment center to a home or business, similar to the well-known models already on offer Amazon ——Only this time it’s a remote control car.
The first pilot tests of Vay technology on Peugeot vehicles are expected to take place this year. Peugeot hopes to apply the technology to its E-3008 electric SUV and some electric vans.
Vay chief commercial officer Justin Spratt told CNBC via emailed comments that the partnership has been 18 months in the making, adding that the company selected Peugeot as the first OEM to integrate its remote driving technology partners because of its “innovative position and broader customer base.”
Spratt said its deal with Peugeot will “demonstrate how delivery operations can be made more cost-effective as vehicles can be delivered, reallocated and cleaned and charged on demand.”
What is remote driving?
“Remote drive” vehicles are a bit like large remote control cars – except they are large enough to accommodate a person.
Unlike autonomous cars, which drive themselves without a human taking control of the vehicle, remotely driven cars are driven remotely by a human operator using instant feedback of the car’s surroundings.
Remote drives undergo weeks of rigorous training and certification before being allowed to operate one of Vay’s remote drive stations.
Vay said its technology is particularly suitable for short-distance journeys, making it suitable for so-called last-mile deliveries as well as logistics hubs. Last mile delivery is the last leg of your order’s journey to your door.
Peugeot is a French car brand owned by a Dutch company star.
Stellantis, whose brand portfolio also includes Chrysler, Dodge, Jeep, Citroën and Maserati, was formed in 2021 through the merger of Fiat Chrysler and PSA Group.
We believe it can provide significant cost savings for all logistics companies, especially e-commerce deliveries. By decoupling drivers from commercial vehicles in distribution centers, operating costs can be significantly reduced. He added that Vay is also exploring the use of remote driving technology to solve last-mile delivery issues through in-vehicle lockers linked to unique customer QR codes.
Justin Spratt
Vey Chief Commercial Officer
Vay is demonstrating remote driving technology with Peugeot at the Viva Technology industrial trade show in Paris this week.
“We believe it can provide significant cost savings for all logistics companies, especially e-commerce delivery,” Spratt told CNBC. “By decoupling drivers from commercial vehicles in distribution centers, operating costs can be significantly reduced.”
He added that Vay is also exploring the use of remote driving technology to solve last-mile delivery issues through in-vehicle lockers linked to unique customer QR codes.
Earlier this year, Vay announced the launch of a commercial remote driving service in Las Vegas, Nevada, allowing people to order a car to their location and then drive it themselves to their intended destination.
Once the user completes their trip, Vay’s remote-controlled driver can remotely take over and park the car, or drive it back to base.
Vay has been tested on public roads in Europe and the United States with a remote driver and no one behind the wheel. The company is currently working to gain full regulatory approval for the technology on both sides of the Atlantic.
Founded in 2018 by tech entrepreneur Thomas von der Ohe, Vay has raised more than $110 million in funding from investors including Kinnevik, Coatue, Eurazeo, Atomico, La Famiglia and Creandum.
Von der Ohe was a technical project manager at Zoox, the self-driving car startup Amazon acquired for an undisclosed amount in 2020.
Notably, Vay says its technology is designed in a way that it can ultimately support self-driving capabilities because it’s collecting valuable data about the physical environment. The company said it does not plan to launch self-driving products soon, but sees remote driving as a “bridge” between manual and self-driving cars.
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