In Abu Dhabi, Mercedes-Benz has just taken a step that no one had really anticipated: transforming the S-Class, a recognised symbol of automotive luxury, into a Level 4 autonomous taxi. Behind this announcement, made at the beginning of December 2025, is an ambitious partnership with Momenta and Lumo, which aims to create the first real top-of-the-range robot taxi service. This unprecedented experiment could redefine the place of carmakers in the autonomous mobility ecosystem, and reposition Mercedes in relation to the technological giants.
The news broke on 9 December 2025 and instantly caught the industry’s attention: Mercedes-Benz will deploy autonomous robotaxis based on its S-Class in Abu Dhabi, in partnership with Momenta, a Chinese specialist in in-car AI, and Lumo, a local operator dedicated to autonomous mobility services. If you think that the Emirate’s choice is a coincidence, you’d be wrong. Over the past two years, Abu Dhabi has established itself as one of the world’s most permissive and proactive regulatory environments for autonomous vehicles. The authorities are stepping up the number of pilot deployments, and a plethora of players are already testing fleets of robot taxis. For Mercedes, which has already made its mark by approving the first level 3 autonomous driving system on an open road, this new step is like a declaration of intent. The German brand not only wants to be part of the future of mobility, it wants to define it in the most premium segment. An unprecedented feat in this sector.
Above all, the announcement illustrates a profound strategic change. In recent years, most robotaxi services have focused on dedicated vehicles, often compact and utilitarian, sometimes deliberately stripped down to reduce operating costs. Mercedes is going in the opposite direction: offering a top-of-the-range, quiet experience in a sensor-equipped S-Class, operated by a Level 4 autonomous system based on Momenta’s software. The aim is clear: to bring to autonomous mobility the quality of experience that affluent users expect from a vehicle with the star, even without a driver. The brand with the Star promises millimetre-precision perception of the environment thanks to a combo of cameras, radar and LiDAR, and smooth traffic flow in complex urban environments thanks to Momenta’s AI model, designed to constantly analyse dynamic situations at very high processing speeds.
The S-Class, redefined
With this initiative, Mercedes is repositioning the S-Class in a completely new role. It’s not just a taxi, it’s a high-tech mobile space capable of making the presence of a human driver obsolete. The brand has always made comfort, silence and ergonomics a trademark, but the full integration of a Level 4 autonomous system transforms the experience in depth. The journey becomes a suspended moment, free from constraints, without any human intervention, in a car designed to pilot itself with a precision superior to that of a professional driver. In a context where the robotaxi market is still suffering from major economic challenges, Mercedes wants to prove that a premium offer can generate new revenue models, particularly in regions where demand for exclusive services is very strong.
Lumo, the project’s operational partner, will play an absolutely key role in this demonstration. The Emirati company, which specialises in top-of-the-range autonomous mobility services, will be responsible for the deployment, journey management and maintenance of the vehicles. For Abu Dhabi, the arrival of a luxury Mercedes robotaxi reinforces the Emirate’s strategy of becoming the global showcase for driverless travel. After the introduction of 100% autonomous robotaxis via the Uber-WeRide partnership at the end of 2025, the Emirate is now adding a premium brick to its ecosystem, a segment on which no other country has yet really bet.
A market where Mercedes is challenging the giants
The project is all the more significant because Mercedes is positioning itself in an unprecedented competitive dynamic. Until now, the robotaxi market has been dominated by the tech giants, led by Waymo, followed by Cruise, WeRide and AutoX. All share a vision centred on technology above all else. With the arrival of the autonomous S-Class, Mercedes is not only taking on these players, but opening up a new sub-segment: that of the luxury robotaxi, conceived not as a utility service, but as a high value-added product designed by a historic car manufacturer. The difference is significant. Mercedes wants to offer a unique, memorable travel experience that will set the benchmark for the industry.
The announcement of 9 December 2025 specifies that operational deployment will begin in 2026, after a phase of testing and regulatory validation. The Emirate, which already has an advanced legal framework for autonomous vehicles, should speed up this process. The trials will test the resilience of the Momenta system under conditions that are as varied as they are challenging, particularly in the face of Abu Dhabi’s highly heterogeneous traffic flows, where hypercars, taxis, delivery vehicles and tourist users cohabit. This real-life environment provides an ideal laboratory for perfecting Level 4 autonomous driving in a demanding but stable environment.
A strategic alliance that reshuffles the deck
The partnership between Mercedes, Momenta and Lumo goes far beyond the simple launch of a service. It heralds a paradigm shift for carmakers. For years, faced with the dazzling progress made by technology companies, many manufacturers have put their ambitions for advanced autonomy on hold or have contented themselves with integrating systems supplied by third-party companies. Mercedes, on the other hand, seems intent on getting back into the game, thanks in particular to Momenta’s software expertise. This strategic alliance between a premium manufacturer, a Chinese AI specialist and a local operator in a very demanding market creates a rare combination.
The Abu Dhabi deployment also serves as a full-scale test to assess the economic viability of a premium robotaxi. Where many autonomous taxi projects struggle to achieve profitability due to high operational costs, Mercedes’ approach could reverse the logic. A robotic S-Class targets an audience with high purchasing power, willing to pay for a unique experience, potentially paving the way for a more sustainable business model. The market in the Emirates, which has historically been geared towards top-of-the-range offerings, is the perfect place for this type of demonstration.
Level 4, a technological demonstration
This project is also a showcase for Mercedes’ expertise in automated driving. The brand was the first in the world to obtain approval for level 3 autonomous driving on open roads, with its Drive Pilot system. The arrival of level 4, even if limited to predefined zones, takes this expertise a step further. Whereas level 3 still requires the driver to take control in certain conditions, level 4 enables the vehicle to drive completely on its own. The German company wants to show that it is capable of integrating technological building blocks that are far more ambitious than its current systems let on, especially in terms of perception of the environment and algorithmic decision-making.
In choosing Abu Dhabi, Mercedes is also anticipating future developments in the market. The Emirate is committed to a strategy of economic diversification based on technology, innovation and sustainable mobility. The infrastructure is modern, the roads wide and the authorities willing. For a manufacturer, this is the assurance of testing a robotaxi in the best possible conditions, far from the more chaotic and restrictive urban environments of Europe or the United States. In this way, the project enables Mercedes to position itself rapidly in an ultra-strategic segment without having to suffer the administrative delays of Western markets.
An ambition that begins in Abu Dhabi
The prospects do not stop at Abu Dhabi. The December 2025 announcement explicitly mentions the ambition to extend the service to other markets at a later date. Naturally, this expansion will depend on the success of the pilot phase, but it also reflects a long-term vision: Mercedes is not content with a technological coup, it wants to lay the foundations for an international network of premium robotaxis. This ambition is part of a context in which manufacturers are seeking to diversify their activities, monetise their technologies differently and position themselves on services rather than just selling vehicles.
Through this initiative, Mercedes is showing that it does not intend to let the tech giants alone dictate the future of autonomous mobility. By banking on an iconic vehicle, cutting-edge technology and a pioneering market, the German brand is profoundly transforming the perception of the robotaxi. It is no longer just a means of transport, but a premium space capable of embodying a new form of luxury. Abu Dhabi is becoming the starting point for a new era, in which autonomy will no longer be synonymous with efficiency, but with experience.
Sources: www.gulftoday.ae – www.heise.de – www.momenta.cn – www.arabianbusiness.com
