TOKYO - Once known as a “3K” job—dangerous, demanding and poorly paid—the taxi industry in Japan has long struggled with labor shortages, but drivers’ incomes have improved significantly in recent years, rising by roughly 40 percent compared with 2020 during the COVID-19 downturn.
Behind the turnaround is the widespread adoption of taxi dispatch apps, which are allowing drivers to earn higher incomes depending on how they work, while also giving some greater control over their schedules and work-life balance.
Changes in how passengers use taxis have played a major role in this shift.
Chiba, a taxi driver who switched careers from the delivery industry several years ago, says his income has risen in recent years after refining how he works. His annual income now exceeds 10 million yen.
“Yes, it’s just over 10 million yen now,” Chiba said. “Other drivers I know are also saying their income has increased.”
Chiba typically begins work at 10 a.m., with shifts that can run until 6 a.m. the following morning. During the shift, he takes a total of about three hours of breaks. The most profitable hours begin in the late afternoon.
After quickly eating soba around 4 p.m., Chiba heads to Tokyo’s Minato Ward, aiming for areas where many people request taxis through apps when heading out to nightlife districts.
“Customers going to the entertainment areas tend to call taxis from here, so I target those rides,” he said.
Soon after arriving, a ride request appears on his dispatch app. Within a minute of starting the trip, another request comes in, directing him to pick up a passenger at Shinagawa Station.
“Many customers use apps during this time, so it’s a very helpful period,” he said.
When passengers book taxis through an app, an additional pickup fee of around 500 yen is typically added to the normal fare. Even with the extra charge, app-based rides remain popular.
Rather than waiting for passengers at taxi stands near stations, Chiba studies when and where app users are likely to appear, adjusting his movements according to weather and demand patterns.
A daily sales ranking compiled by his company shows Chiba placing third out of 71 drivers with revenue of 117,700 yen in one day. The average daily revenue is about 50,000 yen, meaning he earned more than double the typical amount.
Such high-earning drivers are gradually becoming more common in the industry.
“In the past, exceeding 100,000 yen in a day might happen once in December, if at all,” Chiba said. “Now it happens regularly, even on ordinary weekdays.”
At the same time, some drivers are using dispatch apps to balance work with family life.
Murase, who runs a private taxi in Hachioji City, is a single mother raising a first-grade daughter. After dropping her daughter off at school in the morning, she begins work by turning on two apps—Uber and GO.
“I run both apps at the same time,” Murase said. “As soon as a request appears, I tap it immediately.”
The apps allow drivers to view passenger ratings, and Murase sometimes declines requests if the rating is particularly low.
During breaks, she often returns home, where she eats lunch and takes care of household chores such as laundry before heading back out.
Murase usually finishes work around 5 p.m. and picks up her daughter afterward, spending the evening together.
“Because I can decide my movements for the day myself, it’s easier to attend school events like sports days or class activities,” she said. “It’s very easy to maintain a good work-life balance.”
Her annual income is currently around 5 million yen, and she plans to gradually increase her working hours as her daughter grows older.
Taxi dispatch apps first began operating in Japan in 2011, and their usage has expanded steadily as service areas widen. The number of users is expected to more than double compared with 2020, surpassing 20 million in the coming years as the market continues to grow rapidly.
Among younger passengers in particular, more than 40 percent now use apps to call taxis.
Passengers say the service offers convenience.
“It’s easy,” one user said. “I used to go to the station to catch a taxi, but the fare doesn’t really change if you call one through the app, so it feels better to just book it.”
As the way people use taxis evolves, the job of taxi driver—once seen as low-paying and difficult—is increasingly becoming a viable profession.
Watching her mother at work, Murase’s daughter has already started thinking about the future.
“My dream is to become a sushi chef,” she said. “But I also want to be a taxi driver.”
Murase laughed in response.
“Really? That makes me so happy,” she said. “Let’s do it together.”
Source: FNN
