In the framework of the CityMobil project (EC's FP6, 2006-2011), the City of La Rochelle proposed a semi-dedicated site near the city centre to demonstrate, test and evaluate a cybercar system (fully automated vehicles with four to eight-passenger capacity) operating on-demand for six months. The cybercar system will link an electric 'sea bus' station with a Bus Rapid Transit line stop (distant 800m from each other), in a 'horizontal lift' operation starting in early 2011. Beyond mobility and technical research aspects, the setup process of this demonstration project has raised financial, industrial and legal challenges. Based on this experience, this presentation will give a view of the key challenges that applications of automated transport systems face today in urban environments.