VW to sell ID. Buzz robotaxis next year, taking on Tesla and Waymo
Volkswagen-backed autonomous tech company MOIA is offering up a robotaxi of its own, which both mobility operators and regular people can buy next year.
Using VW's (VWAGY) electric ID. Buzz as a donor vehicle, MOIA says it will create a 'turnkey solution' for those looking for an autonomous production vehicle, the company said from an event in Hamburg, Germany.
MOIA's offering uses LiDAR, cameras, and radar combined with Mobileye's self-driving system and the company's own Autonomous Driving Mobility as a Service (AD MaaS) platform. MOIA said its AD MaaS software uses AI to manage fleets in real time and integrates into existing booking apps.
In addition, the system meets key regulatory requirements for SAE Level 4 automated vehicles, MOIA said, using additional features like remote supervision and safe handling of emergency interventions on the streets.
MOIA's all-in-one offering — car, self-driving software, and robotaxi platform — comes as Tesla (TSLA) prepares to begin its robotaxi test in Austin in a few days.
'Beginning in 2026, we will bring sustainable, autonomous mobility to large-scale deployment in Europe and the US, another milestone on our path to becoming a global technology driver in the automotive industry,' said Oliver Blume, Volkswagen Group CEO, in a statement.
VW claims the 'MOIA Turnkey Solution' can be implemented by large commercial fleet operators, as well as individuals who want a fully autonomous solution for private use or business purposes. The ID. Buzz AD will be deployed on Uber's platform starting next year in Los Angeles.
Tesla CEO Elon Musk has long seen this as the holy grail of private vehicle ownership, the ability to deploy a vehicle for robotaxi use when the owner doesn't need it.
VW believes the ID. Buzz is a strong choice for robotaxi use. It features an extended wheelbase and raised roof for added space, sliding electric doors for ease of entry, four separate seats, and storage space both up front and in the rear.
VW and MOIA did not say how much the vehicle would cost when it goes on sale. It is estimated that similar vehicles, like Waymo's (GOOG) bespoke Jaguar I-PACE, cost upwards of $100,000, though as one of the largest automakers in the world, VW may be able to save money since it owns the ID. Buzz platform and has advantages of scale.
Waymo, the leader in the robotaxi space with 250,000 trips a week, just announced it is expanding service in Los Angeles and San Francisco. And it's countering the cost issue by partnering with manufacturers like Toyota and China's Zeekr.
The ride-hailing market in the US is already a big one and poised to explode. Goldman estimates the US market is worth approximately $58 billion currently, but could be worth more than $330 billion by 2030, with robotaxi-type services pushing the industry forward and reducing costs by — among other factors — not requiring a human driver.
Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram.
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