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This study analyses the costs and benefits of fully automated vehicles, operated as part of a ride-sharing system and it compares two alternative technological solutions. For the first solution, automated driving is enabled by hardware and software fully incorporated in the vehicle. For the second solution, automated driving of vehicles is supported by ‘smart roads’ and vehicle movements are coordinated by a central traffic management centre. The study conducts a cost–benefit analysis of these options and a Base Case. The results demonstrate the economic viability of both technological alternatives and show that benefits from improvements in road safety, air pollution and CO 2  emissions outweigh costs. The results further demonstrate that the infrastructure-based automation approach is a more cost-efficient way to enable full automation of driving, compared to the current industry-driven approach which is based on vehicles where automated driving tasks are not supported by the road infrastructure.

Benefits and costs of shared, modular automated vehicles for freight and passenger transport: the case of U-Shift