Advancement in automated driving technology has created opportunities for smart urban mobility. Automated vehicles are now a popular topic with the rise of the smart city agenda. However, legislators, urban administrators, policymakers, and planners are unprepared to deal with the possible disruption of autonomous vehicles, which potentially could replace conventional transport. There is a lack of knowledge on how the new capabilities will disrupt and which policy strategies are needed to address such disruption. This paper aims to determine where we are, where we are headed, what the likely impacts of a wider uptake could be, and what needs to be done to generate desired smart urban mobility outcomes. The methodology includes a systematic review of the existing evidence base to understand capability, impact, planning, and policy issues associated with autonomous vehicles. The review reveals the trajectories of technological development, disruptive effects caused by such development, strategies to address the disruptions, and possible gaps in the literature. The paper develops a framework outlining the inter-links among driving forces, uptake factors, impacts and possible interventions. It concludes by advocating the necessity of preparing our cities for autonomous vehicles, although a wider uptake may take quite some time.