Volkswagen and Uber announce plans to deploy 2,500 Level 4 autonomous ID. Buzz vans in Los Angeles by late 2025, targeting premium rides and logistics.
Volkswagen’s Autonomous Driving Mobility and Transport (ADMT) division and Uber have revealed plans to deploy 2,500 Level 4 autonomous ID. Buzz vans in Los Angeles by late 2025. The partnership leverages VW’s proprietary software, developed from former Argo AI assets, and aims to reduce operational costs by 40% while targeting Uber’s premium rides and mid-mile logistics.
Volkswagen and Uber’s ambitious autonomous ride-hailing plan
Volkswagen’s ADMT and Uber announced on June 12 their collaboration to deploy 2,500 Level 4 autonomous ID. Buzz vans in Los Angeles by late 2025. The initiative leverages VW’s proprietary autonomous driving software, which was developed using technology from Argo AI, a company VW previously invested in before its shutdown in 2022. According to VW’s press release, the software has achieved 95% decision accuracy in urban edge cases during Q2 2024 trials.
Strategic advantages and market positioning
This partnership marks a shift in the autonomous vehicle (AV) landscape, as VW adopts an asset-light approach by partnering with Uber instead of owning and operating its own fleet. This contrasts with competitors like Waymo and Cruise, which follow a full-stack model. Uber’s CEO, Dara Khosrowshahi, stated in a blog post that the collaboration aims to reduce operational costs by 40%, making autonomous ride-hailing more economically viable at scale.
Recent developments in the AV industry
The announcement comes amid significant activity in the AV sector. On June 10, Waymo expanded its driverless ride-hailing service to Austin, its fourth U.S. city, after accumulating over 1.7 million autonomous miles in 2024. Meanwhile, Cruise received approval from the California DMV on June 14 to resume testing with human drivers in San Francisco after a seven-month suspension following safety incidents.
Historical context and industry trends
Autonomous ride-hailing has seen both breakthroughs and setbacks in recent years. In 2021, Waymo launched its commercial service in Phoenix, marking one of the first large-scale deployments of AVs for public use. However, the industry faced scrutiny after high-profile accidents, including Cruise’s suspension in 2023. VW’s partnership with Uber reflects a growing trend of automakers collaborating with tech and mobility firms to share risks and accelerate deployment.
The rise of autonomous mobility also parallels earlier disruptions in transportation, such as the rapid adoption of ride-hailing apps like Uber and Lyft in the 2010s. These platforms transformed urban mobility but struggled with profitability—a challenge AV operators now aim to overcome through automation. Whether VW and Uber’s asset-sharing model can outpace vertically integrated competitors remains a key question as the race for scalable autonomy continues.
