The Volkswagen Group's Moia mobility division has unveiled a new electric minibus that will shortly be providing an app-based ride pooling services on the streets of Hamburg. Once fine tuned the mobility division plans to go international with the goal of replacing 1 million cars in European and American cities by 2025.

The move shows how car makers are now developing alternative models to traditional vehicle ownership. Ole Harms, CEO of Moia said, "We want to offer solutions for traffic problems such as congestion, air pollution, noise and lack of space."

The initial service will start with 200 vehicles, which is quickly expected to rise to 1000. Customers will book a ride through an Uber like app, with a sophisticated pooling algorithm grouping passengers for economy and efficiency. The vehicles will be high on comfort and technology with fast internet access and USB ports.

Moia is aiming to be one of the world’s three biggest mobility providers in the coming years.