Mercedes-Benz Bets on a Suburban Future

From a new Silicon Valley facility, Mercedes' R&D department is developing car-share services based on a vision of 21st-century suburbs. The company is also testing self-driving prototypes and electric models.

1 minute read

October 12, 2015, 6:00 AM PDT

By Philip Rojc @PhilipRojc


Mercedes Benz Suburbs

Axion23 / Flickr

Acknowledging the burgeoning market for urban transit options, including rideshare and traditional public transit, "Mercedes contends that even forces as unsettling to incumbent businesses as the sharing economy won't supplant individual car ownership — especially in the burbs."

From a new facility in Silicon Valley, Mercedes' North American R&D department is working on how to cater to affluent, tech-savvy suburbanites. "In the company's vision, city dwellers might eventually rely more regularly on public transit or on-demand rides from companies like Uber, but they'd still also seek short-term car rentals from providers like Zipcar or Mercedes sister company Car2Go."

Benz is currently offering app-based services like Moovel, a subsidiary providing car-share, bikeshare, and rides on demand. The company is using Palo Alto as a testing ground for Boost by Benz, a ride service catering to parents with school-age children. On the self-driving front, "Mercedes-Benz now has a prototype self-driving S-500 sedan outfitted with eight radar systems and three cameras."

As for sustainability and electric options, Mercedes has yet to unveil any concrete plans. But the R&D team sees low-emissions goals and their other next-gen projects as intrinsically linked.

Thursday, October 1, 2015 in GreenBiz

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

7 hours ago - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

July 11 - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

July 11 - Cities Today