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World / Asia

Japan to introduce limited rideshare system next fiscal year

Published: 20 Dec 2023 - 03:22 pm | Last Updated: 20 Dec 2023 - 03:23 pm
A commuter travels on a bus in Tokyo's Ginza district at dusk on December 13, 2023. (Photo by Philip FONG / AFP)

A commuter travels on a bus in Tokyo's Ginza district at dusk on December 13, 2023. (Photo by Philip FONG / AFP)

Bloomberg

Japan will introduce a rideshare system limited to certain areas and times of day, Chief Cabinet Secretary Yoshimasa Hayashi said Wednesday, as a severe shortage of taxi drivers forces the aging country to rethink its ban.

The system will be set up in the year starting from April under the supervision of taxi firms, Hayashi said, and safety will be a top priority.

Looser regulations on ordinary drivers using their own cars to transport paying passengers could make travel more convenient for inbound travelers in depopulated areas that lack public transportation. 

Stringent regulations govern Japan’s commercial passenger businesses, including on how to set fares and even where to place signage inside and outside a vehicle. As it stands, privately operated vehicles and drivers with a regular license are forbidden from providing such services.

Uber Japan "will closely work with taxi companies and consider how we can contribute to better mobility options for people across Japan, including rural areas by leveraging our technology,” the company said in an email.