This project develops innovative services in the fields of mobility and traffic management in urban environment using emerging wireless technology called vehicular ad hoc networks (VANETs). The project innovation is in the use VANETs to correlate services from both fields in a comprehensive, secure, decentralised, and self-organised way. VANETs can provide cooperative mobility, allowing not only information collection and share between vehicles and travellers, but also cooperation in choosing route and travel modes. To successfully achieve that, novel efficient algorithms and protocols will be designed. In particular, the use of VANETs in this context requires new solutions related to security, privacy and cooperation among self-regarded users. What we want to achieve in mobility management is to improve public transport service quality by minimising traveling time, harmonising headways, and providing passengers with dynamic public transport guidance. Our objectives in traffic management are to improve road efficiency by mitigating flash crowd effect (FCE) and by minimising stop-and-go driving conditions. The mobility management objectives will be achieved by proposing dynamic differential traffic lights scheduling giving priority to public transport, and a personalised navigation service for passengers. The traffic management objectives will be reached by green light speed advisory system calculating optimal speeds of vehicles according to real-time traffic and light schedule information, and cooperative route selection by vehicles. Solutions for traffic efficiency satisfying “user optimal” (game theoretical problem) and “system optimal” (optimisation problem) will be provided. The latter will be achieved using a variable pricing mechanism. In order to reach the objectives, we will develop the core of all proposed services, a VANET-based cooperative traffic and mobility management system (referred to as BUS-ITS). The system will be responsible for collection, storage, and dissemination of information regarding traffic conditions, public transport and traffic lights schedules. It will provide traffic- and mobility-related services proposed in this project. Means of public transport will be used as “information ferries”, serving a role of information hub carrying relevant information between different segments of the city. The innovation of this project is in i) joint addressing in a comprehensive and decentralised way mobility- and traffic –related services mentioned above using cost-effective vehicle-to-vehicle communications technology, ii) addressing the problem of cooperative routing mitigating the flash crowd effect in “system” and “user” optimum settings.