Volkswagen Enters Autonomous Car Business With Spin Off Company Moia

Volkswagen is preparing for an era when cars won't need drivers. The company announced Monday the launch of a spinoff company named Moia that will focus primarily on autonomous vehicles.

Moia, which will be based in Berlin, was introduced on stage at TechCrunch Disrupt in London and will aim to embrace "mobility solutions." That means, it's essentially working on various transportation concepts that won't require car ownership—or in many cases, won't require a human driver.

The move follows the footsteps of automotive companies like Ford and General Motors, which have launched a variety of pilot programs and partnered with ride-hailing services like Uber and Lyft to expand their presence.

The moves are predicated on the idea that in the future, moving around in urban environments won't require owning a car. There's some evidence to suggest millennials in particular aren't all that interested in car ownership and as they become the largest generation, car manufacturers may have to figure out new ways to reach them.

Initatives ranging from mass transit solutions to self-driving vehicles will make it easier for people to get to their destination, and motor companies still want in on getting people from point A to point B.

Moia's first project will be on-demand shuttle services that can be hailed with an app. According to Moia CEO Ole Harms, the shuttles will be electric and designed for carrying multiple passengers — occupying a space somewhere between public transit and Uber.

Prior to spinning off Moia, Volkswagen invested $300 million into London-based ride-hailing service Gett. The company sees on-demand services as the biggest potential for the future of the company and hopes the services will account for a significant share of the company's revenue by 2025.

Volkswagen will also have to hope Moia and its innovations are able to help shake the stigma of the diesel fuel emissions scandal.

After investigations revealed the company had lied about the level of emissions from its diesel-powered vehicles, the company was forced to recall over 550,000 cars and SUVs in the United States, with over 11 million vehicles potentially affected worldwide. The recall is said to cost the company $15 billion in the U.S. alone.