As a part of the venture, the developers will test if vehicles can operate without a staff member on board.
The autonomous bus service in Edinburgh will start in the Spring, after it was awarded a share of £81 million in joint UK Government and industry support to advance the technology.
In total, seven successful projects from around the UK, received funding to gain a greater understanding of how it will work in the future.
According to the Government, the grants will help British companies seize early opportunities to develop experimental projects into offerings ready for the market.
The funding will be provided through the Centre for Connected and Autonomous Vehicles Connected and Automated Mobility programme.
CAVForth II Fusion Processing received £10.4 million to launch its operational, full-sized, self-driving bus service, in partnership with Stagecoach, Alexander Dennis, University of the West of England, and Edinburgh Napier University.
This project will allow Stagecoach to operate its autonomous bus along a 14 mile route. This project will test and refine the commercial service model from its current service.
This could mean that future services in Edinburgh – and across the UK – could operate with no staff on board in the future.
The other six other projects received a share of the funding this year.
Business Secretary Grant Shapps said: “In just a few years’ time, the business of self-driving vehicles could add tens of billions to our economy and create tens of thousands of jobs across the UK.
“This is a massive opportunity to drive forward our priority to grow the economy, which we are determined to seize.
“The support we are providing today will help our transport and technology pioneers steal a march on the global competition, by turning their bright ideas into market-ready products sooner than anyone else.”
The Government believes that self-driving vehicles could revolutionise public transport and passenger travel across the UK.
This is especially true for people who currently don’t drive or have access to a private vehicle.
Department for Transport (DfT) forecasts predict that by 2035, 40% of new UK car sales will have self-driving capabilities – highlighting its importance for the future of the industry.
There are also plans to introduce legislation that will lead to the rollout of other types of self-driving vehicles on UK roads.
This will only happen after a series of safety trials held by both government and industry.
Transport Secretary Mark Harper commented: “Self-driving vehicles will positively transform people’s everyday lives – making it easier to get around, access vital services and improve regional connectivity.
“We’re supporting and investing in the safe rollout of this incredible technology to help maximise its full potential, while also creating skilled jobs and boosting growth in this important sector.”
Would you trust a self-driving bus in your city? In the future, would you want autonomous features in your vehicle? Leave your comments below.
Roadside cover from £5.49 a month
Complete peace of mind for less.