In a significant move towards the future of transportation, Vay, a leading car-sharing company specializing in teleoperated electric vehicles, has announced a strategic partnership with Verizon Communications Inc. This collaboration will see Verizon’s robust 5G network integrated into Vay’s fleet of driverless cars, enabling seamless connectivity and enhanced functionality.
Beyond connectivity, the partnership extends to custom data plans tailored to Vay’s specific needs. This will help manage the vast amounts of data generated by the vehicles’ sensors and cameras, crucial for ensuring safe and efficient operation.
The integration of Verizon’s 5G technology into Vay’s fleet signifies a major step forward for the company’s expansion in the U.S. market. Thomas von der Ohe, Vay’s co-founder and CEO, highlighted the crucial role Verizon’s technology has played in Vay’s U.S. entry, emphasizing their commitment to continued collaboration as the company scales its commercial and B2B businesses.
Vay’s current commercial service operates in Las Vegas, offering users a convenient and innovative way to experience car-sharing. Users can order an electric car via the Vay app and have it delivered directly to their location by a Vay teledriver. Once the trip is complete, the user exits the vehicle, and a Vay teledriver remotely pilots the car to its next customer.
This partnership reflects Verizon’s strategic efforts to unlock new value streams as the telecom industry faces pressure from sluggish quarter results. Verizon’s recent announcement of an expected $1.7 billion – $1.9 billion severance charge in the third quarter, stemming from its voluntary separation plan, reflects this industry-wide cost-cutting trend.
Verizon’s Q2 results showcased a topline growth of 0.6% to $32.8 billion, falling short of the analyst consensus of $33.1 billion. The company did see positive growth in its broadband subscriber base, ending the quarter with 11.5 million subscribers, a 17.2% increase.
Despite industry challenges, Verizon’s stock has performed well, experiencing a close to 34% increase in the past year. Investors interested in gaining exposure to Verizon’s stock can explore ETFs like the Invesco Dow Jones Industrial Average Dividend ETF (DJD) and the SPDR Series Trust SPDR Portfolio S&P Sector Neutral Dividend ETF (SPDG).
VZ stock traded at $44.72 at the last check on Tuesday, marking a 1.03% increase. The company’s commitment to innovation and strategic partnerships like the one with Vay positions them favorably as the telecommunications landscape continues to evolve.
