People don't pay for the external costs of their vehicles, so it should be required to use vehicles efficiently.
This is not a technological question, but a political, and Google ain't going to solve it without an incentive.
But autonomous vehicles could in theory transform car traffic by huge amounts in dense areas, without sacrificing mobility. Munich is a metropolitan area.
The biggest hindrance to mobility in large cities are usually cars and car infrastructure themselves, because the incentives from countries and for companies are to waste space and energy, and subsidize that.
Ride sharing with autonomous vehicles could reduce need for private cars enormously. Not that I think it's gonna happen in Munich because of Google now.
The technology could just help with it.
Alas, Sorry, I wrote quite a bit already, but I don't want to expand on this repetitive discussion for my own sanity.
And yeah, when people want to have many cars and money can be made by building many cars, even subsidized by the state, the we will continue to block more space with them and build more.
"Meatbags" want it, since the successful lobbying of automotive industry to subordinate all public space and resources in the first half of the 20th century.