Ride-Sharing Takes Root in Japan
A new ride-sharing service has launched in Kyoto and Tokyo, and it's already gaining traction. In just two weeks, over 90 taxi operators have registered, and companies are hiring more drivers to meet the growing demand.
While the majority of current users are foreign tourists, taxi companies are optimistic about the service's potential for domestic adoption. Many Japanese are unfamiliar with the concept, but companies like MK Co. are seeing positive results.
On April 15th, MK deployed 20 ride-sharing cars and received 110 reservations during a four-hour window. The company has begun recruiting drivers, offering an hourly wage of 1,300 yen and targeting students with the opportunity to use their language skills.
Unlike popular ride-sharing services abroad, Japan's system requires drivers to be employed by legitimate taxi companies. This regulation addresses concerns from the taxi industry and ensures safety standards.
The new service operates as a supplement to taxis, focusing on designated areas and peak times. While fees are generally the same as taxi fares, ride-sharing drivers don't need a Class 2 license or special vehicle modifications.
Some domestic users remain unsure about the benefits and safety of ride-sharing. Some passengers who requested a taxi through an app received a ride-sharing car instead and canceled their ride.
Despite these concerns, many businesses are recognizing the growing popularity of ride-sharing and adapting accordingly. Go Inc., operator of Japan's largest ride-hailing app, has launched a service connecting aspiring drivers with taxi companies. The service is attracting hundreds of applications daily, indicating a strong interest in this emerging market.