Ridesharing to begin next April in areas with taxi shortages

Dec 21, 2023 | News On Japan

TOKYO - Japan's government has decided to partially legalize "ridesharing," where private drivers can use their personal vehicles to transport passengers for a fee, starting from April next year.

The government held a digital and fiscal reform meeting on Wednesday, where they decided on the partial lifting of the ban on ridesharing.

Under the new system starting next April, areas and times with taxi shortages will be identified using data from ride-hailing apps.

In these areas, private drivers registered with taxi companies will be able to offer paid transportation services using their personal vehicles. In case of an accident, the taxi company will be responsible.

Users will book these services through ride-hailing apps, and the fares will be equivalent to those of regular taxis.

There has been a growing demand for the legalization of ridesharing due to driver shortages, not only in depopulated areas but also in urban and tourist regions. However, the taxi industry has opposed its introduction, citing safety concerns, among other reasons.

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