Australia's first fully driverless and electric shuttle bus has hit the streets of South Perth.

The RAC Intellibus will carry passengers and interact with traffic, parked cars, cyclists and pedestrians as it travels along South Perth Esplanade between the Old Mill near the Narrows Bridge and Sir James Mitchell Park.

The bus without a driver Credit:Claire Pelliccia

The bus pulled into WA in April and the RAC has since been testing out the shuttle in a closed environment.

The RAC's CEO Terry Agnew said the bus will be able to carry up to 11 passengers with an average speed of 25 km an hour.

"This trial is an Australian-first, and will be a real trial incorporating members of the public travelling on public roads," he said.

"We anticipate this first step in exploring driverless technology will start a conversation on further trials, research and collaboration, which will increase WA's understanding of how driverless vehicles can integrate into our transport system.

"The trial will help WA develop a road map of changes that will need to occur