Level four and five automation is coming to California next year, in the form of a ride-hailing trial.

Bosch and Daimler are joining forces for level four and five automated vehicle trials in San Jose, California, set to start in the second half of 2019.

The companies have signed a memorandum of understanding with the city, flagging an on-demand ride-hailing service set to be offered to a "selected user community" in the San Carlos/Stevens Creek corridor.

According to Bosch, the area is facing 40 per cent population growth over the next two decades, bringing with it new challenges in the public transport space.

“The pilot project is an opportunity to explore how autonomous vehicles can help us better meet future transportation needs,” said Sam Liccardo, mayor of San José.

"With this pilot we will generate valuable insights to connect fully automated vehicles in the best way with users of future mobility services."

The ride-hailing service app will be managed by Daimler Mobility Services, and aimed at demonstrating how car sharing, ride-hailing and multi-mode transport systems can be linked up to make it easier for people to get around.

The goal is to provide an experience where users can hail a self-driving car, monitored by a safety driver, from a designated pick-up location and drive automatically to their destination.