Ride-Sharing Struggles to Gain Traction in Japan Due to Fundamental Flaw

Also questioning the necessity.

Taxi operators have long maintained a firm stance against ride-sharing, and fundamentally, not much has changed. The All Japan Hire and Taxi Federation aims for a “one vehicle per company” model for Japan-style ride-sharing, but there remains a significant gap in perceptions. A senior executive from a Tokyo taxi company revealed, 

“It feels like a quota imposed from above. Currently, taxi operators see little benefit in adopting ride-sharing.”

Another crucial point worth noting is the crushing defeat of the ruling Liberal Democratic Party in the House of Representatives election, alongside a significant gain for the Constitutional Democratic Party. Both the LDP and Ishin no Kai, which were actively promoting ride-sharing, saw a reduction in seats.

While some members of the Constitutional Democratic Party have been advocating for ride-sharing legalization, their efforts are largely met with opposition from labor unions and other support bases. Consequently, the opposition-led Taxi Policy Diet Members Federation, consisting of 154 members, has reiterated its stance against ride-sharing. This indicates that the progression of ride-sharing legislation and the introduction of new laws are unlikely to accelerate.

One taxi business representative shared, 

“In light of the results of the House of Representatives election, the ride-sharing debate has been put on hold for now. For the time being, the focus will be on gradually integrating Japan’s version of ride-sharing. However, depending on the outcome of the 2025 summer Upper House election, there is a possibility of a sudden push for full legalization.”

The push for ride-sharing gained momentum around 2022 due to the growing concern over a shortage of taxis. While the number of taxi drivers in urban areas has been gradually recovering, efforts are being made to rejuvenate the workforce.

A pro-ride-sharing member of the Liberal Democratic Party expressed, 

“From a long-term perspective, the difficulty in securing taxi drivers will lead to mobility issues. To broaden access, it is essential to offer entirely different choices to workers.”

The question remains: Is ride-sharing truly necessary for Japanese society? With external factors like elections influencing the debate, the tug-of-war between proponents and opponents of ride-sharing seems set to continue.