Google is to build driverless cars that will have a stop-go button but no controls, steering wheel or pedals.
The vehicle is designed to look like a small city car with a "friendly face" and soft foam-like bumpers to make it seem less threatening.
The two-seater cars will have a top speed of 40km/h to help ensure safety.
Sergey Brin, Google's co-founder, unveiled the plans at a conference in California this week, where a prototype for the vehicle was taken for a test drive.
"We're really excited about this vehicle -- it's something that will allow us to really push the capabilities of self-driving technology, and understand the limitations," said Chris Urmson, the director of the company's self-driving project.