A Berlin-based rental startup has centered its business around tele-operated rentals, touting it as a cheaper alternative to traditional Uber Technologies Inc. (NYSE:UBER) rides.

Vay Promises 50% Cheaper Rides Than Uber

Vay, co-founded by former Amazon.com Inc. (NASDAQ:AMZN) Robotaxi Zoox's employee Thomas von der Ohe, who also serves as CEO, along with Fabrizio Scelsi and Bogdan Djukic. The company promises 50% cheaper costs when compared to Uber, Business Insider reported on Monday.

Vay operates its services in Las Vegas, where it has over a fleet of 100 Kia Motors America's Niro EVs, capped at under 25 mph with four cameras and no sensors. The vehicles are controlled by teleoperators, who have over 1,000 kilometers of remote driving experience before being certified to operate the vehicle, the report said.

Vay has raised over $200 million in funding, including a $60 million investment from Grab Holdings Ltd. (NASDAQ:GRAB), and is offered via its official app. Vay has provided over 35,000 trips, the report said.

According to Vay's official website, the company delivers a rental car to customers via its remote drivers, who can also park the vehicle for customers at "$0.35 per minute, and $0.05 per minute when parked."

The company also touts an autonomous trucking service by "deploying Remote Drivers to handle the short segments autonomy struggles with today," the website says.

However, von der Ohe confirmed in the report that Vay's current plans do not include a Robotaxi future like the ones offered by Alphabet Inc.-backed (NASDAQ:GOOGL) (NASDAQ:GOOG) Waymo.

Robotaxi Race Heats Up

The news comes as the Robotaxi race has heated up in the U.S., with Waymo firmly placed in the driver's seat and looking at a global expansion. The company is also seeking to raise more than $10 billion in funding at a $100 billion valuation. The company also recently unveiled its "Ojai" minivan-style Robotaxi, built in collaboration with Chinese automaker Zeekr.

However, NewStreet Research analyst Pierre Ferragu has touted Tesla Inc.'s (NASDAQ:TSLA) Robotaxi as a more capital-efficient service than Waymo. He shared that Tesla also had a fleet advantage over its rivals, as well as over ride-hailing companies like Uber.

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