Addison Lee has announced plans to have self-driving taxis on the streets of London by 2021.
The taxi firm has partnered with the self-driving software specialist Oxboticasigned, signing a deal to deploy autonomous vehicles in the capital.
The group has said that its 5,000 taxi drivers will remain employed and the first development will focus on shuttle buses around airports or campuses.
Car manufacturers including Ford (NYSE: F), General Motors (NYSE: GM) and Daimler are also investing in self-driving vehicles.
Michael Hurwitz, who is the director of transport innovation, said London was committed to working with firms developing driverless vehicles.
“All cities across the UK, including London, need to understand the opportunities, risks and challenges they face when considering how transport will operate in the future,” he said.
Chancellor Philip Hammond said in 2017 that he wanted to have “fully driverless cars” without a safety attendant on board in use by 2021.