London: Engineers are working on developing new battery-powered driverless cars that can hit speeds of 12mph.
GPS technology will enable the battery-driven two-person "pods" to steer round objects, people and each other, the Mirror reported.
Business Secretary Vince Cable said the driverless cars, which are expected to glide along pavements by 2015 have the potential to generate high-skilled jobs, while cutting congestion and pollution and improving road safety.
The 2 pounds-a-trip pods will be hailed and paid for via a mobile phone app.
David Willetts, the minister for higher education at the business department, said that one aim is to see if driverless cars are safer so they can cut road traffic accidents. They don`t get drunk or drive under the influence of drugs and they don`t get exhausted and fall asleep.