Hamburg and Free Now by Lyft launch robotaxi pilot

The Free and Hanseatic City of Hamburg (which functions both as a city and one of Germany’s 16 federal states) and mobility platform Free Now by Lyft have signed a memorandum of understanding to jointly test autonomous taxis in live urban traffic. The initiative marks the first project of its kind in Germany in which a municipality and a private mobility provider jointly define concrete conditions for operating Level-4 autonomous vehicles in public space.

What autonomous transport could mean for public budgets

Autonomous buses have the potential to shift the financial foundations of public transport. Lower operating costs and new fleet concepts could reduce the level of public funding required over the coming decades.

Benjamin Müller

Rather than replacing existing transport services, the project focuses on integration. Autonomous taxis are intended to complement Hamburg’s current mobility offering, particularly during off-peak hours and in districts with limited public transport coverage. The aim is to improve access and flexibility while embedding automated services into the city’s broader transport ecosystem.

Pilot areas and operating principles

The pilot will begin in Altona-West, Hamburg-Nord and Bergedorf — districts considered suitable for testing autonomous vehicles alongside public transport. Robotaxis are expected to support first- and last-mile connectivity, improving links to major public transport hubs via on-demand services.

The MoU defines four guiding principles for the project: maintaining high safety standards, actively involving local taxi operators, systematically analysing operational data, and enabling a gradual transition from pilot operation to regular service. Free Now by Lyft will be responsible for selecting suitable technology partners and incrementally integrating automated vehicles into its existing fleet structure.

The initiative is also strategically significant for Lyft. The US ride-hailing company entered the European market in 2025 through its acquisition of Free Now, formerly owned by BMW and Mercedes-Benz. Hamburg now serves as Lyft’s first European test case for autonomous taxis under real operating conditions.

What to expect at the Automotive Computing Conference 2026

On 24 and 25 March 2026, the Automotive Computing Conference returns to Detroit. Industry experts from OEMs, suppliers and technology partners will discuss how SDVs, AI, virtualisation and new computing architectures are reshaping the automotive industry.

Benjamin Müller

Results from the pilot are expected to inform potential rollouts in other cities. A successful deployment could therefore have signalling effects well beyond Hamburg, influencing how autonomous mobility services are introduced across Europe.

Role of the local taxi industry

A key element of the agreement is the explicit inclusion of local taxi companies. Hamburg emphasises that human drivers will continue to play an important role, with autonomous vehicles positioned as a supplement rather than a substitute. Over time, new roles are expected to emerge in areas such as fleet supervision, maintenance and technical operations.

This cooperative approach distinguishes the Hamburg project from purely technology-driven trials. Autonomous taxis are treated as part of an integrated urban mobility system in which traditional and automated services coexist.

Hamburg’s robotaxi pilot goes beyond a local experiment. It reflects broader shifts in urban mobility towards platform-based services, automation and data-driven operations. At the same time, regulatory frameworks, public acceptance and technical robustness remain critical challenges.

How effectively Hamburg balances innovation with safety, integration and stakeholder involvement will be closely watched — and could help define how autonomous taxi services are introduced in cities across Europe in the years ahead.

Munich and Berlin as parallel testbeds

In southern Germany, Uber and Chinese autonomous driving specialist Momenta announced plans to begin Level-4 autonomous driving tests in Germany from 2026, with Munich expected to serve as the European launch location. The partnership aims to integrate Momenta’s AI-driven autonomous technology into Uber’s global platform to enable scalable robotaxi services in Europe and beyond.

Munich was selected due to its strong engineering heritage, dense automotive ecosystem and openness to innovation. “Testing L4 autonomous vehicles in Munich allows us to demonstrate how Momenta’s AI-driven robotaxi technology can transform urban mobility. Together with Uber, we aim to write a new chapter in this region’s rich automotive history,” said Xudong Cao, CEO of Momenta. Uber CEO Dara Khosrowshahi added: “Germany has shaped the global automotive industry for more than a century, and now Munich will help shape the future with autonomous vehicles.”

In the northwest of Berlin, autonomous VW ID. Buzz AD vehicles developed by Volkswagen subsidiary Moia have entered public roads as part of a federally funded pilot project. Equipped with Level-4 technology, the vehicles are intended to explore how traditional public transport can be expanded through flexible, self-driving services.

The project, supported by €9.5 million from Germany’s Federal Ministry of Transport, focuses on integrating autonomous shuttles into existing transit networks rather than replacing them — a strategy that mirrors Hamburg’s emphasis on coexistence and gradual deployment.

Mercedes, Momenta and Lumo launch robotaxi fleet in Abu Dhabi

Mercedes-Benz is teaming up with Chinese autonomous driving specialist Momenta and UAE taxi operator Lumo to deploy a luxury robotaxi service in Abu Dhabi. The Level-4 fleet will be based on the Mercedes-Benz S-Class and is set to begin operations next year.

Benjamin Müller