VW’s ID. Buzz will power new Uber robotaxi service

Volkswagen $VWAGY ( ▲ 0.44% ) isn’t banking its future in the U.S. on car buyers alone—which makes sense, given that a lot of young Americans couldn't care less if they ever own a vehicle. 

Yep—as hard as it might be for some in the car world to accept, there are real human beings here on planet earth who are completely turned off by the idea of having to drive.   

First things first: VW’s big move to cater to those consumers as well as people who prefer a variety of mobility options involves a new partnership with Uber $UBER ( ▼ 0.45% ) —with plans to launch a commercial robotaxi service that will use autonomous electric VW ID. Buzz vehicles.  

• The plans—unveiled Thursday—will launch in late 2026 in Los Angeles [where else, right?], with plans to expand to multiple U.S. cities over the next decade.

• Don’t expect a fleet of self-driving Uber-badged Buzz vehicles cruising LA streets akin to the Waymo-badged Jaguar I-Paces that practically run downtown LA—at least, not right away.  

• The VW/Uber Buzz robotaxis will roll out with human safety operators behind the wheel before going driverless in 2027, according to a press release.

VW’s strategy gives the company's autonomous vehicle subsidiary, Volkswagen ADMT, time to work through the regulatory processes required to test and operate an autonomous commercial robotaxi service. 

In context: A global company like VW that is looking to remain competitive can’t afford to rely solely on car ownership to stay sustainable, given the shifting consumer sentiments towards driving.

Between the lines: A recent study by Deloitte paints a vivid picture of how real the anti-car ownership movement is in the U.S.—despite that many in the business are quick to try to dismiss these findings, saying that they aren’t representative of the young people they know.

• 44% of individuals aged 18 to 34-year-olds in the U.S. are willing to give up traditional vehicle ownership in favor of a mobility-as-a-service (MaaS) solution, according to a study by Deloitte.

• 56% of people surveyed in the U.S. (as part of a study by Continental) are open to autonomous driving technologies—with 18 to 34-year-olds having a more favorable opinion of the tech overall.  

Bottom line: As younger Americans rethink vehicle ownership, VW is betting that shared, autonomous mobility—starting with the ID. Buzz—will be just as essential to its U.S. strategy.

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