The taxi firm has announced that it has joined forces with self-driving software specialist Oxbotica for the purpose of rolling out self-driving options to customers in the UK capital in three years' time.
The move towards self-drive will see Addison Lee go head-to-head against Uber, the world-famous ride-hailing firm, which is also planning to roll out driver-less cars in the future.
Addison boss Andy Boland said he wants his company to be at the "forefront" of the move towards self-driving cars.
However, the market is poised to become ultra-competitive in the coming years, with the likes of Ford, General Motors and Mercedes-Benz owner Daimler also investing in self-drive technology.
Despite the investment, Uber suspended self-driving car tests in all North American cities earlier this year following a fatal accident.
The decision was taken after a woman was killed as she crossed the street in Tempe, Arizona.
In a subsequent statement posted on Twitter, Uber - which started testing driverless cars in Pittsburgh in 2016 - said: "We're fully cooperating with @TempePolice and local authorities as they investigate this incident (sic)"