In Kyoto, a new ride-sharing service has seen considerable growth, with over 90 taxi operators signing up within two weeks of its launch. The service, initially popular among foreign tourists, has prompted taxi companies to expand their driver base in preparation for its broader acceptance. One local taxi company, MK Co., received a ride-share booking from Vietnamese tourists via the Uber app at Kiyomizudera temple, showcasing the service's appeal to international visitors.
While ride-sharing is common in other countries, the concept is still relatively unknown to many domestic customers in Japan. MK Co. reported that 90% of their ride-sharing clients are foreigners, highlighting the service's current demographic. Despite the success and growing demand since the service's introduction on April 8, there remain reservations among some domestic users about the benefits and safety of ride-sharing compared to traditional taxis.
Unlike popular ride-sharing platforms like Uber and Lyft, Japan's ride-sharing regulations require drivers to be employed by licensed taxi companies, a regulatory measure influenced by local taxi industry opposition and safety concerns. Although the service operates within designated areas and during peak hours to support taxi services, it marks a shift in the transportation landscape. While the fees for ride-sharing in Japan are similar to taxi fares, ride-sharing drivers do not need specific licenses or equipment such as roof lights and meters, creating a more flexible approach to transportation.
As the service gains traction, businesses like MK Co. are adapting by recruiting more drivers to meet the escalating demand. Initially underestimating the need for additional drivers, the company's decision to hire new staff and recruit individuals, especially students with language skills, reflects the evolving nature of the ride-sharing market in Japan. With hourly wages offered and a push for driver recruitment, companies are actively responding to the changing transportation landscape influenced by the rise of ride-sharing services.