Two Months After the Start of the Japanese Ride-Sharing Service: The Good and the Bad

Two months have passed since the ban on “Japanese-style ridesharing” was lifted in Tokyo and some other areas to alleviate the cab shortage.

While rideshare drivers in the U.S. and other countries are sole proprietors, “Japanese-style” drivers are part-timers who are operated and managed by cab companies. At first, few vehicles were caught, but finally they are gradually becoming more common in the city.

I used the “Uber” app, the only app in Japan that allows you to select and call a ride-sharing vehicle, and actually rode in one.

When I matched with a driver near a certain station in Koto-ku, a Lexus SUV showed up in about three minutes. The driver was Mr. Takano (pseudonym, in his 30s), a sports club manager. He looked a little nervous as he began to drive away.

All of the customers I’ve picked up so far have been foreigners, and this is the first time I’ve picked up a Japanese customer. The average sales per ride is about 12,000 yen. After deducting expenses, the hourly wage is about 2,500 yen. I work three days a week, and my monthly income is about 60,000 to 70,000 yen.

When we interviewed businesses that offer ridesharing, one thing that was almost universally true was that many of them are luxury vehicles. Mercedes Benz, BMW, and Porsche are not uncommon, they said. This is probably because a high percentage of drivers are self-employed or business owners due to restrictions on vehicles and working conditions. Why did Mr. Takano start working in ridesharing?

In my case, my work starts in the evening, so I wanted to make the most of the three hours I had in the morning. I was looking for a side job that would allow me to earn money in a short amount of time and provide me with stimulation, and I found it.

However, he has not decided whether he will continue working.

“Considering the cost of maintaining the car and the sales, I honestly feel that it’s a little more tame than I thought it would be, so I’ll have to give it some more thought,” he said.

We arrived at our destination, about 15 kilometers away, enjoying the comfort of the Lexus and the conversation, which was different from that of the cab drivers. The fare was about 7,000 yen, about the same as a cab.

While this is a novelty, it also poses a challenge. Issei Horie, 60, an advisor to Royal Limousine and a member of the Ride-Sharing Regulatory Reform Promotion Council, raises the issue.

Part-time employment limits the number of human resources that can be obtained. Unless outsourcing, which expands the range of work available to drivers, is allowed, it will be difficult to penetrate the ridesharing market in Japan.

It will be some time before the true value of ridesharing is tested.

From the June 28, 2024 issue of FRIDAY