Considering Japanese Version of Ridesharing

Reflecting current shortage of taxi drivers, Prime Minister Fumio Kishida considers introduction of Japan version of ridesharing. In the post-COVID world, the business sectors in Japan expects major regain from foreign travelers coming to Japan. However, bureaucrats in Japan are always reluctant to loosen the regulations over businesses. Robbery or sex crime should, for them, be the cause of opposing deregulation for taxi business. How will Kishida’s decision be look like?

The foreign travelers are increasing in such scenic cities as Kyoto or Kamakura. They use taxis or buses to move between the sights. Sometimes buses are filled with the tourists and the residents cannot ride them. With years-long scarcity of drivers, taxis cannot fully meet the demand for local transportation. A taxi driver needs to get the special driver’s license, which is called the second category of normal car license. The government started thinking about taking advantage of private car owners without the taxi driver’s license for local transportation.

 

In his policy speech at the beginning of current extraordinary session of the Diet, Kishida touched on his idea for introduction of ridesharing. “I will tackle on the issue of ridesharing, dealing meanwhile with the shortage of drivers for local or urban transportation,” said Kishida. He asserted that he would “establish new system in the society with thorough reform of regulations and visualization of projects based on the concept of evidence-based policy making.”

 

Japanese version of ridesharing is considered as a system that supports taxi business. Taxi companies in each city will have an interview to the drivers before it registers as ridesharing drivers. After registration, taxi companies will control on which way the registered car to go, or in charge of safety measures. While the taxi company will be busier than before, but the additional cost will be paid by customers.

 

The biggest concern is crime between driver and customer. It is worried that robbery of driver’s money or rape on customers can increase, when non-professional taxi drivers become common. Being afraid of additional burden on taxi companies, the labor unions are getting negative against the idea of introducing ridesharing system.

 

In the rural towns in Japan, where railways and buses have disappeared with decrease of population, how to maintain the public transportation has long been the problem for the residents. The national government introduced exceptions for the private cars to bring the people to the shopping or sending aged people to hospital. Those activities rarely caused any crimes. Keeping regulation because of possible crime seems to be protecting the interest of specific business.

 

The man who ignited the discussion over ridesharing in August was former Prime Minister Yoshihide Suga. Minister in charge of Administrative Reform Taro Kono became in charge of this issue. Shinjiro Koizumi made a question to Kishida on ridesharing at the Committee on Budget earlier this month. The common ground for those three lawmakers is that they are elected from the districts in Kanagawa Prefecture. Realizing their influential power in Liberal Democratic Party, Kishida cannot ignore their voices to achieve their support for the presidential election next fall.