This chapter examines European public policy toward demand-responsive transport (DRT) and automated mobility on demand (AMOD) in the context of the EU’s competitiveness imperative. Essentially, it explores whether Europe has the appropriate policies, funding mechanisms, and regulatory conditions in place to scale up pilot projects into reliable and accessible mobility services that improve both sustainability and industrial leadership. To answer this question, the chapter examines the broader policy and funding environment that shapes the development of smart mobility in the EU and considers how effectively it supports the transition from research to real-world deployment. It identifies the key regulatory challenges that currently slow down innovation (e.g., fragmented regulation, cybersecurity, data protection and liability challenges) and explores their impact on Europe’s ability to innovate on a large scale. A comparative perspective shows how other global players, such as the United States and China, are moving faster by adopting more flexible or more centralized approaches. Ultimately, this chapter argues that Europe has the potential to lead globally in AMOD by leveraging its strong safety culture and legal framework. However, this will only be possible if regulation becomes more flexible and encourages experimentation. To achieve large-scale deployment and maintain competitiveness in the global mobility market, the chapter proposes four key policy measures: creating EU-wide regulatory sandboxes, strengthening collaboration between public authorities and private stakeholders, adopting an iterative, data-driven approach to policymaking, and establishing a common liability framework.