Volkswagen Group’s plan to launch a robotaxi service operated by its Moia mobility business in 2025 remains on track, despite news this week that Argo AI, the startup company developing the self-driving system for the service, has shut down.
VW Group together with Ford were the main backers of Argo AI, but both automakers decided to cease additional funding for the startup, citing the slow road to commercialization of its self-driving technology.
While Ford is scaling back its self-driving ambitions, having announced on Wednesday during the presentation of its third-quarter financial results that it will now focus on developing in-house self-driving technology ranked at Level 2 and 3 on the SAE scale of self-driving capability, VW Group is pushing ahead with its plan to launch a Level 4 robotaxi service.
Level 4 signifies a vehicle can drive on its own for extended periods but within certain conditions, the main one typically being within a geofenced area containing highly detailed map data. Level 3 is the first level in which a driver can take his or her eyes off the road, though only for short periods. The driver also has to be ready to take back control at any time. Level 5 is the ultimate goal, where a self-driving car matches the capability of a human.
VW Group on Wednesday said it is continuing to develop its robotaxi service with a new partner whose identity will be revealed shortly. VW Group and the new partner are currently testing self-driving Volkswagen ID.Buzz electric vans on public roads, and will use the vans for the eventual commercial service. VW Group said the service will initially run in 2025 in parts of the German city of Hamburg, and has hinted the service may expand to the U.S.
The automaker will also rely on its in-house software development business Cariad for self-driving technology. Cariad is developing a self-driving system for private vehicles and in August announced a multibillion-dollar deal with Innoviz for the supply of lidar sensors. Cariad is also working with the companies Bosch and Horizon Robotics on self-driving technology and is expected to absorb some of the assets and staff of Argo AI.