Tensor and MTZ sign LOI to deploy up to 500 autonomous taxis in Germany – Unite.AI

Tensor Auto Inc., an American physical AI company and developer of the Tensor Robocar, and Munich taxi operator Münchner Taxi Zentrum (MTZ) announced a letter of intent (LOI) on October 27, 2026, to deploy Tensor Robocars as autonomous taxis in Germany, with an initial fleet of up to 500 vehicles in German cities and MTZ operating the service.

The companies made the plan known at the autonomous mobility summit in Madrid, where MTZ CEO Gregor Beiner and Tensor commercial director Hugo Fozzati were photographed with the Robocar. The ad describes MTZ as Munich’s largest taxi operator.

An operator-driven business model

Under the structure outlined in the announcement, the taxi operator manages the service and maintains customer relationships and the brand, while Tensor sells the Robocar and provides autonomous driving as a recurring subscription called Autonomous Driving as a Service or ADaaS. Control of the fleet, customer and data remains in the hands of the taxi company, an arrangement the announcement describes as maintaining that control in Europe.

Tensor said it selected MTZ due to its established regulatory relationships, its approval for commercial operations and more than 40 years of operational experience in Munich. MTZ will operate Robocars under its own brand as part of its taxi service, and the companies said other taxi operators across Europe may adopt the same model. The Robocar is designed to integrate with MTZ’s existing dispatch systems, so that riders can book and travel with MTZ as they currently do; in collaboration with the city, MTZ decides where, when and how its autonomous fleet circulates. Under the model, Tensor provides autonomous driving software, fleet management tools, ongoing service and training through ADaaS subscription, while MTZ manages the vehicles.

Fleet financing would come from financial institutions working with mobility operators and taxi companies, a deal the companies say will enable rapid growth while creating a new asset class in European mobility. Operators like MTZ would handle day-to-day service operations.

Fleet objectives and European expansion

In addition to the initial target of 500 vehicles in Germany, the partners said they aim to place 10,000 additional Robocars with European operators within 24 months of the Robocar’s availability in Europe. The announcement states that the partnership has access to an extensive industry network through Beiner’s roles in the taxi industry; he chairs Taxis 4 Smart Mobility, or T4SM, a coalition of taxi organizations from six European countries that the companies say could adopt the same operator-led model. The partner structure starts in Germany and expands across Europe as goals are achieved.

The LOI also expects the two companies to explore selling Robocar to private buyers in Germany. The announcement cites a potential market of around 50,000 taxis currently in Germany and around 500,000 across Europe.

Tensor founder and CEO Jay Xiao said that autonomous driving will transform urban mobility and that Tensor is building the technology and partner ecosystem needed to provide safe, premium Robocar services at scale. He called MTZ an important partner to bring Robocar services to Germany and expand across Europe. Beiner said the taxi industry has a leading role to play in bringing sustainable autonomous driving to Europe. He said MTZ will operate autonomous vehicles in Munich under its own name while maintaining service quality and control over customer data, and added that professional drivers remain indispensable in situations requiring personal assistance or a human touch.

The Tensor Robocar

The ad describes the Robocar as purpose-built for autonomy rather than converted from an existing car and built to the more rigorous standards required for personal use. Tensor presents this dual-purpose design as a benefit to both operators and passengers in taxi service.

According to Tensor, the vehicle is designed to perform automated maintenance checks and clean its sensors, then park itself with the sensors shielded, reducing the time spent in storage. Tensor also describes the Robocar as being driven by an artificial intelligence that, rather than simply following pre-programmed rules, reasons about its surroundings, understands what the rider asks for and acts accordingly. The company said passengers will be able to speak to the vehicle in natural language, asking it to change a route, make an extra stop or answer questions.

The initial implementation in Germany is subject to definitive agreements between the companies and Level 4 regulatory approval in Germany.