German taxi operator MTZ to deploy up to 500 autonomous taxis under Tensor deal

German Taxi Operator MTZ to Launch 500 Autonomous Taxis Under Tensor Deal

MTZ and Tensor Auto Partnership for Autonomous Taxis in Germany

Oct 27 (Reuters) - Germany's largest taxi operator Münchner-Taxi-Zentrum (MTZ) and US autonomous-driving company Tensor Auto signed on Tuesday a letter of intent to deploy self-driving taxis in Germany as taxi operators seek a bigger role in Europe's emerging autonomous-mobility market.

Deployment Details and Operational Model

The companies said MTZ would operate up to 500 autonomous vehicles in German cities under its own brand, while Tensor would provide autonomous-driving technology through a subscription model.

Key Features of the Partnership

• California-based Tensor's model would see taxi operators retain control of fleet operations, customer relationships and operational data rather than the technology provider running the service
• The autonomous vehicles would be integrated into MTZ's existing dispatch platform, allowing passengers to book rides through current taxi channels

Expansion Plans

• The companies said they aim to expand the model across Europe, with a target deployment of 10,000 additional vehicles through taxi and fleet operators within 24 months of the vehicle becoming available in the region
• MTZ and Tensor, founded in 2016 by Jay Xiao, will also explore offering the autonomous vehicles to private buyers in Germany

Financial and Regulatory Considerations

Financial Terms

No financial terms were disclosed, and the agreement remains contingent on Germany granting Level 4 autonomous-driving approvals

Industry Context

Competition in the European Market

Waymo said this month it was planning to launch a fully autonomous ride-hailing service in Madrid in 2027, as autonomous-taxi companies expand in Europe

(Reporting by Prathik Jayaprakash in Bengaluru; Editing by Perla Velasco)