Volkswagen and Uber have formed a strategic partnership to launch thousands of all-electric, self-driving ID.Buzz vehicles across U.S. cities over the next decade. Testing is expected to begin in Los Angeles in late 2025, pending permits from the California Department of Motor Vehicles. The first commercial service is scheduled to launch in Los Angeles by the end of 2026, with plans to expand to additional U.S. markets; however, specific locations haven’t been announced.
Christian Senger, CEO of Volkswagen Autonomous Mobility, emphasised the company’s vision: “Volkswagen is not just a car manufacturer — we are shaping the future of mobility, and our collaboration with Uber accelerates that vision. What sets us apart is our ability to combine the best of both worlds — high-volume manufacturing expertise with cutting-edge technology and a deep understanding of urban mobility needs.”
This partnership, announced on April 24, 2025, marks a significant milestone in the development of autonomous mobility. It combines Volkswagen’s manufacturing prowess with Uber’s ride-hailing services to launch a robotaxi service in Los Angeles in 2026. Earlier this year, Volkswagen announced ChatGPT integration, the latest move set to hit European roads in 2024.
Here’s what we know about the partnership so far.
The vehicle: Electric ID.Buzz microbuses
At the heart of this partnership is Volkswagen’s Id.buzz, an all-electric reinterpretation of the iconic VW Microbus. The self-driving variant, recognised as Id.buzz AD, will form the basis of the robotaxi service. With its extended wheelbase, the Id.buzz can accommodate a minimum of seven passengers, making it ideal for ride-hailing services.
Volkswagen launched the standard ID.Buzz in the U.S. in November 2024, and the autonomous version enhances this platform with advanced self-driving technology. In March 2024, Volkswagen became the first automaker to develop a Level 4 autonomous vehicle for mass production, enabling the car to navigate most driving scenarios independently within defined areas, such as cities.
Technology infrastructure and launch timeline
The robotaxi service will use autonomous driving technology developed by MOIA, a Volkswagen AG subsidiary specialising in mobility solutions. This technology combines cameras, radar, and lidar sensors to enable safe navigation in urban areas.
The partnership will take a measured approach to introducing these autonomous vehicles. Testing is scheduled to begin in late 2025 in Los Angeles with human safety operators. The 2026 commercial launch will also include human operators to monitor and refine the technology. By 2027, the goal is to transition to fully driverless operations, pending regulatory approval, followed by expansion to other U.S. cities.
This gradual rollout helps Volkswagen navigate California’s complex regulatory landscape while maintaining passenger safety. The California Department of Motor Vehicles oversees the testing and deployment of autonomous vehicles, while the California Public Utilities Commission manages permits for commercial robotaxi services.
The Volkswagen-Uber partnership enters a dynamic landscape of robotaxis. Michael Ramsey, an analyst at Gartner, notes that robotaxis are resurging after earlier overoptimistic forecasts: “If you stretch your mind back 10 years, a lot of companies were pretty bullish about this technology being widespread by 2020. That obviously didn’t happen, but now the technology has improved, and its price has come down significantly. I expect that we begin to see true commercialisation over the next year or two.”
Other companies are also advancing their autonomous services. Waymo, Alphabet’s autonomous driving unit, is expanding its robotaxi service to Austin and Tokyo. Tesla is developing robotaxis and a “Robovan” for up to 20 passengers, with supervised ride-hailing already operating for select employees in Austin and the San Francisco Bay Area. Tesla recently reported completing over 1,500 trips and 15,000 miles using its full self-driving vehicle.
Is the future of urban mobility already here?
For Volkswagen, this partnership marks a major step in commercialising its autonomous technology. Following the end of its collaboration with self-driving startup Argo AI, which was closed due to the withdrawal of support from Volkswagen and Ford, Volkswagen has pivoted to working with Mobileye while developing capabilities through its subsidiaries, ADMT and MOIA.
For Uber, this adds to its growing portfolio of autonomous vehicle partnerships. The ride-hailing company now collaborates with more than 14 autonomous vehicle firms across ride-hailing, delivery, and trucking. Uber’s recent launch of its robotaxi service with Waymo in Austin, followed by its expansion to Atlanta, demonstrates its strategy of becoming a comprehensive platform for autonomous services rather than developing the technology internally.
“This collaboration marks a significant milestone in the advancement of autonomous mobility and highlights both Volkswagen’s and Uber’s shared dedication to building the future of transportation,” said Dara Khosrowshahi, CEO of Uber. “We can’t wait to launch in Los Angeles late next year.”
Yet challenges persist, including complex regulations, safety standards, and building public trust in autonomous vehicles. As Kjell Gruner, President and CEO of Volkswagen Group of America, noted, “Volkswagen believes that mobility is transformational. Our partnership with Uber is the next step for us to realise this vision and unleash the potential of autonomous mobility.”
As testing begins later this year and commercial service launches in 2026, this partnership will serve as a bellwether for the path of autonomous ride-hailing to becoming a mainstream transportation option in American cities.
