The objective of this paper is to describe the Cabintaxi automated guideway transit system, a new type of system for the movement of people and goods within urban areas, and to indicate its economic and performance characteristics. The approach taken is to consider a series of seventeen trade-off factors, and to indicate why a particular design decision was made in each case. The result of such a process of system analysis has in the case of Cabintaxi, produced a system of outstanding characteristics able to perform its intended function with minimum weight, cost, energy, noise and land use, maximum safety and reliability, and with service characteristics far superior to conventional approaches. The system is to be operational in Germany by 1979.