A self-driving car operated by Uber that killed a pedestrian allegedly detected the woman as she crossed the road but chose not to alter its course.

The death was caused by a software function that meant the pedestrian was categorised as a “false positive” to be ignored, according to an internal investigation.

Company insiders said that Elaine Herzberg, 49, and her bicycle were acknowledged by the car’s sensors but then dismissed, much like a paper bag blowing in the wind.

The semi-autonomous Volvo SUV drove into Ms Herzberg as she crossed the road in Tempe, Arizona, on the evening of March 18. She died in hospital that night, making her the first person to have been killed by a driverless vehicle.

Two sources speaking to…