The Mainichi Shimbun addresses several frequently asked questions regarding ride-sharing services, where ordinary individuals utilize their personal vehicles to carry passengers for compensation. These services operate around the clock across all of Osaka Prefecture as part of preparations for the Expo 2025 Osaka, Kansai, taking place between April 13 and October 13.
Firstly, can you explain how the ride-sharing service operates in Japan?
The response was as follows:
Ride-sharing services commenced in April 2024 within select regions across five Japanese prefectures—Tokyo, Aichi, and Kyoto among others—and subsequently rolled out nationally. According to guidelines set forth by the Ministry of Land, Infrastructure, Transport and Tourism, these shared rides have designated vehicle limits and are authorized for operation during periods when taxi availability is low. These drivers work through taxi firms, receive proper instruction, and their charges adhere strictly to predetermined rates tied to travel duration and distance akin to standard taxicabs. Passengers can summon these automobiles via a mobile application.
A: Are 24-hour ride-sharing services akin to the Expo edition uncommon?
A: In August 2024, the transportation ministry eased regulations related to ride-sharing, including adjustments for timing and car limits at major events. For the "Nenrinpic" national health and wellness festival held in Tottori Prefecture that October, nearly every region within the prefecture was allowed to operate rideshares around the clock.
A: What factors contributed to the development of the Expo edition of ride-sharing services?
A: In October 2023, Governor Hirofumi Yoshimura of Osaka indicated his interest in adopting ride-sharing services for the upcoming Expo. He suggested at that point permitting participation from fresh entities like IT firms and incorporating “dynamic pricing,” where rates fluctuate according to market conditions similar to international ride-hailing systems.
Starting in May 2024, the national government permitted up to 120 ride-sharing vehicles per night on Fridays and Saturdays, along with an additional 210 during early Saturday mornings, within Osaka City and its vicinity. Nevertheless, the local prefectural administration kept engaging in talks with the central authority, arguing that should tourist numbers rise due to Expo attendees, there could be insufficient taxi services available.
A: What makes the prefectural government so forward-thinking?
A: Led by Governor Yoshimura, the Nippon Ishin party (Japan Restoration Association) has consistently promised to introduce ride-sharing services. Their objective is to foster new business ventures via the "sharing economy" concept, where people’s spare time and underused assets can be leveraged using modern IT tools. Yoshimura has gone so far as to denounce Japan's current restrictive regulations surrounding these services as merely “pseudo ride-sharing.”
According to estimates from both the Osaka prefectural and municipal authorities, if the daily visitor count at the Expo reaches up to 227,000 people, there could be an additional 143,000 individuals using taxis each day for tours within the prefecture. This would lead to a shortfall of approximately 1,880 taxicabs.
Q: Is there truly going to be such a shortage?
A: On the contrary, the Osaka Taxi Association, an organization comprising taxi operators within the prefecture, claims that they can handle the increased demand despite a daily surge of 150,000 taxi riders during the Expo. While the national trend shows a decrease in the number of taxi drivers because of age-related factors and the impact of the COVID-19 pandemic, statistics reveal growth in this sector for the prefecture starting from fiscal 2022, as reported by the Osaka Taxi Center, which operates as a public-interest incorporated foundation. The driver count climbed from 20,256 at the close of fiscal 2022 to around 1,000 additional individuals one year later, maintaining an upward trajectory of approximately 100 new hires each month.
Q: Why the increase?
A: As demand for transportation, particularly from incoming tourists, recovers with the easing of the pandemic, along with fare increases implemented at the end of May 2023—which facilitated higher earnings for drivers—these appear to be significant contributors. A local taxi company president commented, “At present, we have too many taxis.” The Japanese authorities have endorsed a plan allowing for adaptable cab usage across the region during the Expo. In response, the taxi association intends to boost the number of available cabs.
Isn’t there likely to be more competition between taxis and rideshare services?
A: Perhaps. In February, the national government stated that up to 315 cars per day would be permitted for the Expo edition of carpooling services in Osaka City and nearby areas until May 2025. They have authorized round-the-clock service operation starting mid-February, and the count of vehicles operational from June onwards will depend on subsequent discussions with relevant stakeholders, taking into account real-world outcomes.
Between December 2024 and January 2025, a trial of round-the-clock ride-sharing services was conducted within the prefecture. Newmo Inc., a ride-sharing firm based in Tokyo but active in Osaka Prefecture, reported that allowing drivers greater flexibility with their working hours through this 24/7 format resulted in six times as many individuals applying to become drivers. The company spokesperson voiced optimism that boosting the number of vehicles could unlock untapped demand.
In contrast, a high-ranking representative from the Osaka Taxi Association expressed worry: "Taxi firms maintain a specific fleet size to serve clients reliably, even during periods with low demand in various areas. Should ride-sharing enterprises prioritize profits and target only those spots and moments with substantial passenger volume, they would essentially pick off the most lucrative trips."
What occurs following the Expo?
A: The Expo edition of the service is set to conclude. Nevertheless, both the Osaka Prefectural and Municipal Governments maintain that incoming tourism will rise gradually and highlight an anticipated shortfall in transportation capacity. In response to potentially reducing or eliminating certain public transport options, the national government intends to explore easing restrictions on non-taxi entities entering the ridesharing sector. Nippon Ishin aims to propose additional deregulatory measures through a fresh rideshare bill submitted to the Diet. Findings from the Expo period’s operations could provide crucial momentum for these changes.
(Japanese original by Itsuo Tokubo and Motohiro Inoue from the Osaka City News Department)
0 Comments