Freenow by Lyft (Nasdaq: LYFT) and the City of Hamburg have signed a Memorandum of Understanding (MoU) to advance the integration of autonomous vehicles (AVs) into Hamburg’s future-focused mobility ecosystem. This marks Germany’s first collaboration between a city and a private company to establish a strategic framework for introducing Level 4 AVs into the taxi sector and to set clear guidelines on how to integrate AVs into a city’s mobility ecosystem.

“With the electrification of the taxi fleet, we laid the foundation for the long-term viability of the industry. With this memorandum on autonomous driving, we are now taking the next logical step,” said Anjes Tjarks, Senator for Transport and Mobility Transition. “Autonomous taxis can make an important contribution to public transport connectivity, particularly during off-peak hours and in underserved areas. Hamburg is pursuing a forward-looking strategy for autonomous mobility and for modern on-demand and taxi services that are integrated into the urban transport system.”

Once AVs launch, Hamburg will operate as an integrated, hybrid mobility market, where traditional public transportation and taxis, including AVs, each play a vital and interconnected role. Both Freenow by Lyft and the City of Hamburg believe drivers will remain central to the mobility system, with their expertise continuing to be essential as AVs strengthen the overall network and create new job opportunities in maintenance, operations, and fleet management.

AV integration guiding principles

“This memorandum is a milestone – not only for Hamburg, but for Germany as a whole,” said Thomas Zimmermann, CEO of Freenow by Lyft. “Together with the city, we are creating a clear framework for the first time to move autonomous taxis from testing into real-world operations. Freenow by Lyft contributes technological, operational, and regulatory expertise. Our goal is to combine innovation with responsibility and to ensure that the local taxi industry actively participates in this deployment.”

The partnership is unique in that it establishes a clear pathway to scale autonomous vehicles from pilot testing to regular, citywide service. Its goal is to embed AVs into Hamburg’s broader transportation landscape in a beneficial way, with the city’s taxi sector playing a central role in their integration from the outset. The MoU specifically defines guiding principles for:

Freenow by Lyft and Hamburg are setting a new standard for cities across Germany and across Europe: AVs do not need to be viewed as a technology project, but can be strategically linked to a city’s existing mobility landscape. This unique approach will potentially lead to faster and more efficient deployment of AVs, better serving riders across Germany.

“This represents the kind of public-private collaboration that will define the future of autonomous mobility,” said Jeremy Bird, EVP of Global Growth at Lyft. “By working hand in hand with Hamburg from the outset, we are ensuring that AVs are integrated thoughtfully – in ways that strengthen public transit, support local taxi operators, and deliver real benefits to residents.”

Pilot tests: starting by connecting public transportation

The partnership will pilot AV testing in Altona-West, Hamburg North, and Bergedorf. The testing phase will begin in areas where, in parallel, Freenow by Lyft has received approval from Hamburg’s Authority for Transport and Mobility Transition to establish a first- and last-mile on-demand service to improve access to public transport hubs. The initial focus on these areas marks the ideal starting point to both assess the benefits of autonomous taxis as an addition to public transit and to explore how to generate benefits for the traditional taxi industry.

As part of this collaboration, Lyft will select suitable AV partners in the coming months across the value chain, including self-driving technology providers and vehicle manufacturing.