Farmers turn drivers, apps boost bookings, and local innovations reshape mobility
As Japan continues to face a shortage of taxis and limited public transport options, ride-hailing services are rapidly spreading across the country. Once confined to select areas, these services are now available in all 47 prefectures, offering an alternative lifeline for commuters and travelers alike.
But what’s really driving this change—and how is it transforming life in both cities and rural towns?
From Tokyo to Small Towns: A Shift in Transportation
Ride-hailing in Japan officially launched in April last year, starting in major cities such as Tokyo, but with a unique condition: services had to be managed by licensed taxi companies. Since then, the model has seen unexpected success and has expanded dramatically.
Now, people in early morning and late night hours—when taxis and public transport are often unavailable—can book rides via smartphone apps with over 90% success, up from around 70% before ride-hailing began, according to the transport ministry.
With 3,300 drivers already registered in central Tokyo and nearby areas, the service is gaining momentum. But its real impact is being felt in smaller towns that were previously underserved.
Kiryu’s Clever Ride-Hailing via Line App
In Kiryu, Gunma Prefecture, the pandemic caused a steep decline in taxi availability, severely affecting local restaurants. In response, the city introduced ride-hailing in November using a booking system powered by the Line messaging app—an everyday communication tool for many in Japan.
With up to five ride-hailing vehicles operating at night, the system helps people reach restaurants and return home safely when public transport shuts down. A local official noted, “The service is useful during hours that can’t be covered by public transportation.”
Watermelon Farmers Become Winter Drivers
In Obanazawa, Yamagata Prefecture, a new twist on ride-hailing has taken shape. The city, known for its hot spring resorts, introduced the service in December—but with a unique workforce: watermelon farmers and others with reduced winter workloads.
By becoming seasonal drivers, they support tourism while supplementing their income. It’s a powerful example of how local needs and resources can align in unexpected ways.
Osaka Goes 24/7 Ahead of Expo 2025
In Osaka, which is preparing to host the World Exposition in 2025, ride-hailing services have been operating 24 hours a day since February. The move reflects rising tourist demands and the city’s need for consistent, flexible transportation.
This marks a shift from traditional public systems to more on-demand, tech-enabled models of mobility.
What’s Next?
To further widen the reach, Japan’s transport ministry is planning to allow bus and railway operators to manage ride-hailing services—not just taxi firms. This policy shift could significantly increase the coverage and accessibility of ride-hailing in rural and underserved regions.
A Question Worth Asking
As more people turn to these services, will Japan’s traditional taxi industry adapt or struggle to compete? And more importantly, can ride-hailing truly fill the gaps left by aging infrastructure and a shrinking workforce?
One thing is clear: Japan is quietly redefining mobility, blending modern tech with local ingenuity. Whether through apps, farmers, or 24/7 coverage, ride-hailing is becoming more than just a service—it’s becoming a solution.
Keywords: Ride-hailing, Japan transport, taxi shortage, Line app, Kiryu, Obanazawa, Osaka Expo 2025, mobility solutions, public transportation, watermelon farmers, on-demand rides
Source: https://www.japantimes.co.jp/news/2025/04/06/japan/ride-hailing-services-spreading/
