Lyft (LYFT.O) unit Freenow and Baidu's (9888.HK) Apollo Go unveiled the Chinese company's RT6 autonomous vehicle in London on Thursday and said they hope to launch a driverless robotaxi service in the city in 2027.

The two companies began testing vehicles in London with safety drivers in the summer and hope to have fully driverless vehicles in the city next year, aiming for a commercial launch in 2027.

The partnership between San Francisco-based ride-hailing firm Lyft and China's Baidu in London comes as the US Senate is working to pass a permanent ban on Chinese cars in the United States, pushing more companies to focus on Europe.

Competition between robotaxi developers in London is heating up. UK self-driving vehicle startup Wayve and Lyft rival Uber (UBER.N) launched a robotaxi service in London in September, initially with a human safety driver behind the wheel.

US robotaxi company Waymo, a unit of Google parent Alphabet (GOOGL.O), aims to launch a fully driverless ride-hailing service in London by the end of this year.

Freenow UK general manager Danny O'Gorman said London was a particularly good testing ground, with lots of speed bumps, narrow streets and many roads limited to 20 miles per hour.

"So the car is going through the phase of learning the rules of the road much like you would do if you're trying to pass your own driving test," O'Gorman told Reuters during a demonstration ride.

O'Gorman said the company was working closely with Transport for London and expected regulatory guidelines in the coming week. He recognised new technology "can sometimes be scary" but most Londoners were excited about the prospect He said robotaxis were not trying to replace London's famous black cabs. The firm is talking about "tens of vehicles in the next year or two" as it tests the market.

"In terms of the taxi in London, the iconic black cab, this is not a replacement for that service," he said. "Black cabs are a fundamental part of London."