It still doesn't solve the problem that private vehicles require n times more space than a fleet of busses or bicycles.
It's easy to fall into the trap of deciding that buses/bicycles are somehow morally better (or worse) than private cars. This is not so -- we should dispassionately judge the tradeoffs instead, ideally with an eye towards allowing individual people to make the choices that fit their needs best.
(And anyway, since we're talking autonomous vehicles here, you could park them together in central locations and then even the space argument mostly goes away.)