Tensor Auto Signs Letter of Intent to Deploy Autonomous Taxis in Germany

American Physical AI company Tensor Auto Inc. and Munich’s largest taxi operator, Münchner Taxi Zentrum (MTZ), have announced a letter of intent to deploy a fleet of autonomous taxis in Germany. The companies unveiled the planned partnership on Tuesday at the Madrid Autonomous Mobility Summit.

Partnership Structure

The agreement outlines a business model where MTZ will operate the autonomous taxi service under its own brand, managing customer relationships and integrating the vehicles into its existing dispatch systems. Tensor Auto will supply its 'Robocar' vehicles and provide the underlying self-driving technology through a subscription model called Autonomous Driving as a Service.

According to the announcement, the partnership will leverage third-party financial institutions to finance the vehicle fleets for mobility operators. The companies will also explore the possibility of offering Tensor Robocars directly to private buyers in Germany.

Scale and Ambition

The initial deployment phase targets placing up to 500 Tensor Robocars in various German cities. Following a successful launch, the partners aim for a significant expansion, with a goal of deploying an additional 10,000 Robocars with other European operators within 24 months of the vehicle becoming available in the region.

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The companies noted the significant market potential, citing approximately 50,000 taxis currently operating in Germany and 500,000 across Europe. "Autonomous driving will redefine urban mobility," said Jay Xiao, Founder and CEO of Tensor, adding that MTZ is an "important partner as we bring this vision to Germany and expand across Europe."

Key Contingencies

The plan is contingent on several key factors, as the letter of intent is a preliminary, non-binding step. The deployment is subject to the finalization of definitive agreements between the two companies and, crucially, securing Level 4 autonomous driving regulatory approval in Germany.

Gregor Beiner, CEO of Münchner Taxi Zentrum, stated that the taxi industry has a "leading role to bring sustainable autonomous driving to Europe." He also noted that professional human drivers will remain necessary for situations requiring "personal service, assistance or a human touch."