Volkswagen to test ID Buzz robotaxi with passengers in Hamburg

Volkswagen plans to offer rides in its fully autonomous ID Buzz AD to people in Hamburg, Germany's second-largest city, before the end of the year, with full-scale operations slated to start within two years.

Volkswagen Commercial Vehicles CEO Carsten Intra announced the plans during a press conference in Hanover last month.  

A safety driver will behind the wheel during the test phase to ensure the autonomous vehicle functions properly. Previous test drives of the autonomous ID Buzz were conducted in 2021, initially in Munich and later expanded to Hamburg and Austin, Texas, in the U.S. without members of the public in the vehicles.

The forthcoming trial operation seeks to gauge user response under real-world road conditions.

"If we are satisfied with the feedback, we will then open it up to everyone," Intra said.

Intel subsidiary Mobileye has been working with VW to develop the self-driving technology in the ID Buzz. The service will be run by VW's mobility solutions subsidiary, Moia.

Once in commercial service, each vehicle will be monitored by a fleet control center, Volkswagen Commercial Vehicles executive Chris Yan told Automotive News Europe in an email reply to questions.

"At all times, especially in case of an emergency or at the vehicle's request, a human supervisor in the fleet control center is in charge," he said.

That person can give driving instructions to the vehicle, speak via video intercom to the passengers or call authorities/paramedics to the vehicle's location if needed.

The vehicles only operate within defined city areas that provide at least a 4G cellular bandwidth for a permanent cloud connection, to secure communication access and to locate the vehicle's exact position.

The aim is to develop a series-production, full-electric, Level 4-autonomous ID Buzz AD for widespread use in mobility and transport services starting in 2026. Level 4 means an automated system drives, and a human has no role in the driving process (see box, above, right).

VW is also developing intelligent fleet control for the autonomous vehicles, Yan said.

"Moia brings its practical know-how into the development of our product, operating Europe's largest private ride-sharing service in Hamburg since 2019, having transported more than 10 million passengers to date," he said.

Yan said autonomous vehicles for mobility and transportation services can help solve the ongoing driver shortage.

"Many cities in Europe are currently considering the Moia service in Hamburg as a role model for their future mobility offers, while in the U.S., the ID Buzz AD could be interesting for commercial providers in the ride-hailing mobility sector," he said.

Volkswagen plans for two use cases: 1) autonomous mobility services and 2) autonomous transport services.

"Autonomous transport offers a possible solution to driver shortages by ensuring long-term delivery capability and it gives us the chance to participate in the growing goods delivery market," he said.

Yan added that VW subsidiary Volkswagen ADMT is working to develop autonomous freight transport for various industries as a second pillar alongside autonomous passenger transport.

"In the future, autonomous vehicles shall be able to drive to loading and unloading stations or even to customer addresses independently," he said.

Significant challenges

Despite the hype around robotaxi trials and technology, Gartner analyst Pedro Pacheco said VW's entry into the sector poses significant challenges from technological, social and financial perspectives.

"The initiative to test the ID Buzz AD with passengers is a step forward, but the road to widespread adoption is fraught with complexities," he said.

Developing a successful robotaxi service involves ensuring safety, scalability and profitability.

"Volkswagen must navigate the complexities of autonomous technology, including creating a robust safety framework to gain public trust," Pacheco said. "You can't have accidents."

Last year General Motors' Cruise unit recalled all its driverless cars to update software following an accident involving a pedestrian.

Achieving scalability requires the ability to operate seamlessly in diverse urban environments, which demands continuous investment in technology and infrastructure.

Socially, VW faces the challenge of public acceptance and regulatory scrutiny.

Moreover, the potential impact on traditional taxi drivers and regulatory hurdles – including where robotaxis are allowed to go – pose significant obstacles that VW must address.

"Financially, transitioning from a vehicle manufacturer to a mobility provider requires substantial investment and long-term commitment," he said.

VW must weigh the financial risks against potential rewards, considering factors such as operational costs, revenue generation and market demand.

"They are a very large company with a lot of financial power, but we don't know how much they are really willing to invest in this initiative," Pacheco said. "If they come to a point in which they need to reduce costs, there are activities that will be reviewed, and in some cases even discontinued."

He added that plenty of other companies have so far failed to effectively crack the autonomous ride-hailing market, and noted other automakers with stakes in mobility services companies, including BMW and Mercedes, have since changed course.

Pacheco said it will also be important to understand what Volkswagen's long term strategy is for an autonomous taxi service.

"It's one thing to operate a pilot to develop technologies and get them accepted by the public," he said. "They will come to a point where profitability needs to be achieved. Otherwise, it's not sustainable. If you can't turn a profit, none of this matters."