Volkswagen (VW) has launched a fleet of its self-driving all-electric ID Buzz vehicle prototypes in Munich, Germany, with passengers from politics, public authority, and business sectors observing its control capabilities.

The vehicles will be operated via MOIA, VW’s on-demand ridepooling services subsidiary in Germany.

The development program focuses on the vehicle's commercial use in urban centers in Europe and North America, particularly for ridesharing and transportation.

VW’s self-driving vehicles are equipped with cameras, LiDAR, radar, and self-driving software from its partner Mobileye. The vehicles are capable of Level 4 autonomous driving (i.e., fully autonomous vehicles limited to specific locations and/or conditions) and can carry up to four passengers. The company also noted its intention to start series production of the unit once the demand is sufficient.

Analyst QuickTake: Today’s launch comes days after the company announced a similar program in Austin, Texas. However, the launch in Germany is one step ahead, as it is carrying observers as passengers, while the vehicles deployed in Austin are only accompanied by safety drivers. Furthermore, its business model for Texan operations would eventually involve providing vehicles to third-party companies for delivery or ride-hailing purposes, unlike in Germany, where the vehicles are operated via its own ridepooling subsidiary.