Currently, the population is increasingly concentrated in large cities and metropolitan areas, urban outskirts are being actively built up. According to sociologists, more than 80 % of the population will live in cities by 2025. Megacities are characterised by social tension associated with the transport and environmental situation, which is aggravated due to population growth, an increase in its density and an increase in the number of cars per capita.The «city–transport» system has feedback features. When the city will exhaust the capacity of the created transport system regarding rapid and convenient movement of passengers, it will be necessary to change the characteristics of urban transport vehicles up to creation of fundamentally new ones based on modern energy sources.Transport is a service industry and must meet the requirements of those who use it. For urban passenger transportation, the core thing is the quality of service.At all times, people had a desire to move around, using a variety of animals for this depending on the region of residence. Wealthy people had special carts, carriages, and animals in their property. Ordinary people travelled on foot, but with the growth of settlements and cities, they began to experience great difficulties in moving over long distances. The idea of creating public transport, i.e., available for use by any inhabitant for a moderate fee was formulated by the famous natural philosopher, mathematician, physicist, writer Blaise Pascal in 1661.This idea saw serious development later due to the intensive growth of cities and due to developments of scientists in the field of exact sciences.This review article has used research method which is the analysis of the history of emergence and development of each mode of transport in world and domestic practices, that has made it possible to trace evolution of urban transport up to the present day. The objective of this article is to present further evolution of the city’s transport service, which requires an innovative approach to creation of new modes of transport.The author’s research has been reflected in the relevant articles, as well as in the chapters on «Urban transport» of several textbooks.The article discusses an innovative approach to modernisation of existing urban vehicles and creation of new ones that will ensure environmental friendliness, accident-free operation, reduce the occupancy of the city, create comfortable conditions for transportation of passengers, etc. This provides for the widespread use of digital technologies, as well as of non-traditional transport systems.The prospective introduction of fundamentally new vehicles is considered and analysed using the examples of the experience of cities and megacities in Russia and abroad.