Autonomous local transport – How cities and municipalities are becoming pioneers

When we talk about autonomous driving, many still imagine a private car gliding through the city without a steering wheel. But while this vision dominates the media, the real transformation is unfolding quietly, deliberately – and visibly: in public transport. Cities and municipalities are the first to integrate autonomous systems into daily operations. And not as test balloons, but as a logical response to an urgent infrastructure challenge.

The shortage of public transport drivers is not new – but it's becoming critical. According to the Association of German Transport Companies (VDV), tens of thousands of bus drivers will be missing in Germany alone in the coming years. At the same time, the demand for climate-friendly, accessible, and flexible transport – especially in rural areas and during off-peak hours – continues to grow. Autonomous shuttles can efficiently and driverlessly fill exactly these gaps.

Looking back:

As early as 2017, cities across Europe began pilot projects for autonomous buses. Whether in Lyon, Berlin, or Tallinn, the goals were similar: simple shuttle connections, ideally without drivers. In Germany, programs like Modellprojekt e-Bus and EU initiatives like Horizon 2020 helped lay the groundwork. Vehicles came from specialists like Navya, EasyMile, or academic-industry consortia.

A notable case of autonomy meeting safety-critical vehicle control is the Space Drive system. Originally developed by Paravan for accessible mobility, this drive-by-wire technology was also used in the Olli autonomous shuttle from Local Motors. The goal: fail-operational, purely electronic steering. While the Olli project was eventually discontinued, the underlying technology remains a milestone – meeting ISO 26262 ASIL D standards and proving how redundancy and digital control enable autonomy. Omnibusrevue

Current status (2025):

Today, around 20 cities in Germany are testing driverless people movers in public areas. In Berlin, for example, a pilot on the EUREF campus has been running since October 2025, preparing operations without a safety driver. The goal: regular Level‑4 vehicle services by 2026. Similar initiatives are underway in Hamburg, Karlsruhe, and Osnabrück, each with different vehicle concepts and route profiles.

The legal foundation for this was laid in 2021: With the introduction of §1d StVG and the Autonome-Fahrzeuge-Genehmigungsverordnung (AFGBV), Germany created a global first – a legal framework that allows Level-4 autonomous driving in public traffic, under clearly defined conditions. Law or Regulation and approval 

Looking ahead:

From 2028, experts expect autonomous shuttles to become a permanent part of municipal transport – first in new developments, then as extensions of existing lines. Germany’s Federal Ministry for Digital and Transport plans to support such systems within its digital public transport strategies. In parallel, OEMs like Renault, ZF, and Bertrandt are developing new platforms specifically for urban autonomy. Source

What truly matters: Trust through safety.

This is where Arnold NextG comes in. Our NX NextMotion drive-by-wire platform is certified, fail-safe, and ready for real-world deployment. It enables redundant steering, braking, and acceleration – everything an autonomous shuttle needs in urban operation. And because our architecture supports OTA updates, municipalities can roll out new software features without taking vehicles offline. With Safety-by-Wire, we offer a system built for continuous operation.

Conclusion and invitation to discussion: Autonomous driving in public transport is no longer a vision – it’s real. Cities like Berlin, Helsinki, or Busan are showing the way. But every community can become part of this future – provided it finds the right partners.