Volkswagen is betting big on autonomous driving, targeting €10 billion in annual revenues within seven years as it launches robotaxi services in Los Angeles with Uber. The German automaker's MOIA unit plans to deploy 100,000 self-driving vehicles by 2033, positioning itself as Europe's champion in a market dominated by US rivals Waymo and Tesla.

Unlike competitors developing proprietary technology, Volkswagen relies on Israeli startup Mobileye for its autonomous systems. The company's ID. Buzz electric vans use cameras and sensors similar to Waymo's approach, but VW's partnership model with local transport operators sets it apart. This strategy includes vehicle leasing, maintenance, and fleet management software training.

VW faces significant challenges entering a market where Waymo has already logged 125 million autonomous miles. The German automaker's test vehicles have covered only 1 million kilometers, highlighting the gap with established players. However, VW believes its European market knowledge and mapping data from existing vehicles provide competitive advantages, particularly in navigating challenging weather conditions that US rivals have largely avoided.