Volkswagen is going ahead with a bold bet: a strategic partnership with Intel’s Mobileye, a purpose-built robotaxi called the ID. Buzz AD, and a white-label business model that targets scale without the operational burden. The company expects to deliver 480 autonomous EVs to Uber in 2026, with a framework that could grow that number to 10,000 in the coming years.
Unlike tech companies such as Waymo, Tesla, and Zoox that are racing to operate their robotaxi fleets, Volkswagen is taking a different path. It doesn’t plan to run fleets itself. Instead, it wants to build and supply the vehicles and backend systems, letting companies like Uber handle the customer-facing services. Christian Senger, who heads VW’s autonomous division, said this model reflects where the real margin potential lies. While profit margins in the mobility sector tend to hover in the low single digits, and even automotive averages remain in the high single digits, artificial intelligence opens the door to double-digit returns. For Volkswagen, this shift is a rare opportunity to move into a higher-margin business without abandoning its roots as a manufacturer.
What Volkswagen unveiled this week is more than just a car. The ID. Buzz AD is a production-ready autonomous electric vehicle based on its nostalgic microbus design, engineered specifically for ride-hailing services. It combines the familiarity of a passenger EV with the features required for a world without drivers. From its powered sliding doors that eliminate the need to manually shut them, to a spacious interior that fits a family of four with their luggage, VW’s design focuses on functionality and comfort. The idea is simple: one vehicle, one ride, no compromises. Where Tesla’s smaller upcoming Cybercab may require two bookings for larger groups, the ID. Buzz AD can handle it in one.
The technological core of VW’s robotaxi is as carefully thought out as its design. Its height of 6’4” allows for a roof-mounted lidar system that doesn’t have to jut awkwardly into traffic, and the vehicle hides its eight lidar units, 13 cameras, and five radar sensors seamlessly into the exterior, thanks in part to a black paint scheme that blends them into the bodywork. These sensors allow the robotaxi to detect nearby obstacles and distant hazards up to 300 meters away. And by using many of the same components found in Audi and Porsche models, Volkswagen can manufacture the robotaxi at scale, minimizing costs.
The brains behind the machine come from Mobileye. Volkswagen chose Intel’s AV subsidiary not just for its proven tech but for its willingness to collaborate transparently. Instead of insisting VW rely on a sealed software “black box,” Mobileye worked with VW engineers directly. The vehicle uses four EyeQ6 chips processors already deployed across a wide swath of the automotive industry, which enables a feedback loop called “swarm learning.” Vehicles on the road send sensor data back to Mobileye, continuously improving the system’s mapping and behavior. And because these chips are deployed widely, the cost of each unit is lower than proprietary options like Nvidia’s Drive Orin, used by premium brands such as Mercedes-Benz.
Volkswagen claims the final product is a robotaxi that can drive up to 75 miles per hour, in any weather, around the clock. But the vehicle is only part of the offering. VW’s bigger ambition is to provide a full-service, plug-and-play autonomous mobility solution. Along with the car itself, VW includes backend software for routing and fleet optimization, a white-label booking app for companies that don’t already have one, and training programs for command center operators. Fleet customers, such as Uber, only need to add their branding and start taking fares. This allows VW to stay out of the direct-to-consumer ride-hailing game, focusing instead on delivering scalable solutions.
With Waymo expanding into New York City, Zoox opening its first robotaxi factory, and Tesla preparing to begin Cybercab testing in Austin, the autonomous ride-hailing race is heating up again. But unlike those companies, Volkswagen isn’t trying to compete as a tech company. It’s betting that its experience in automotive manufacturing, combined with strong AI partnerships and a flexible, asset-light approach to deployment, will give it an edge in a market McKinsey estimates could hit €450 billion by 2035.
