## Japan Launches Safe and Regulated Ride-Sharing Services
Japan's first official ride-sharing service launched in Tokyo on April 8, 2023, offering a new transportation option with safety and regulation at its core.
Unlike popular global services, drivers are employed by taxi companies, ensuring proper training and work management. The service operates as a cashless complement to traditional taxis, available only in designated areas and during specific times of need.
The launch was marked by a ceremony attended by key figures, including Transport Minister Tetsuo Saito, who emphasized the importance of maintaining safety standards on par with regular taxis.
The initial launch covers specific areas in Tokyo, Kanagawa, Aichi, and Kyoto prefectures, with plans to expand to eight additional cities later. Only taxi companies can participate in the market, and drivers must be employed by them.
Customers cannot hail ride-sharing vehicles directly on the street. Instead, they use designated taxi dispatch apps like "Go" and "S.Ride" during specific hours set by the transport ministry. The app displays the fare upfront, and passengers select their pick-up and drop-off locations within the designated area.
Vehicles do not have the traditional taxi rooftop sign or meters. Fares are generally comparable to those of app-hailed taxis, remaining fixed even if the trip takes longer or shorter than expected. Adjustments are made only if the pick-up or drop-off location changes or expressways are used.
Go app users cannot specifically request a ride-share car; either a taxi or a ride-share vehicle will arrive. However, they can still request a taxi directly. Go Inc. has not disclosed the number of ride-share drivers it partners with, but emphasizes that taxis will likely be the primary vehicles dispatched through the app.
Uber Japan plans to partner with about 10 taxi companies to launch a ride-sharing service with several dozen cars. The company intends to leverage its existing Uber Eats delivery network, with about 1,000 drivers expressing interest in becoming ride-share drivers.
Currently, taxi companies manage and operate ride-sharing services, prioritizing safety through measures like driver health checks, weather and road condition updates, and alcohol detectors in vehicles.
The transport ministry regulates the number of ride-sharing vehicles, allocating them to participating taxi companies based on data from taxi dispatch apps. The ministry aims to address taxi shortages, particularly in Tokyo on Saturday nights, by initially distributing half of the estimated 2,540 additional vehicles needed. The remaining vehicles will be held back for future entry.
Japan's cautious approach to ride-sharing prioritizes safety and regulation, ensuring a controlled and responsible implementation of this new transportation option. The initial launch in select areas will provide valuable insights and pave the way for potential future expansion.