Volkswagen aims to capture a significant share of the growing autonomous ride-hailing market, which could reach €450 billion in size by 2035. The German automaker has partnered with Intel subsidiary Mobileye to develop its own white-label robotaxi, which will be delivered to Uber next year. Volkswagen’s strategy is to focus on providing the necessary technology and software while leaving fleet management to other companies like Uber.
The company’s CEO, Christian Senger, believes that autonomous ride-hailing can offer high profit margins, particularly in AI-powered vehicles where margins are expected to start in the double digits. This contrasts with traditional automotive businesses, which typically have lower profit expectations. Volkswagen’s focus on autonomous ride-hailing is driven by its desire to tap into this lucrative market and stay competitive.
The company has unveiled a production-ready version of its ID. Buzz AD, a spacious and retro microbus-style EV designed specifically for the autonomous ride-hailing market. The vehicle features a powered sliding door, easy entry in tight spaces, and ample space for passengers. It also boasts a high-tech sensor suite manufactured at industrial scale, which enables it to spot objects up to 300 meters away.
Intel’s Mobileye chips and software stack serve as the brain of the vehicle, providing real-time updates using sensor data collected from existing cars. This approach allows Volkswagen to utilize widely available technology while minimizing costs. The company plans to deliver its first 480 robotaxis to Uber next year, with potential orders for up to 10,000 vehicles.
Volkswagen’s white-label package includes necessary backend software and a digital customer booking platform, which can be easily customized by fleet customers. This approach minimizes financial risks and allows companies to quickly scale their operations.
Source: https://fortune.com/2025/06/21/volkswagen-robotaxi-tesla-waymo-uber-los-angeles-zoox