Japan to Partially Legalize Ride-Sharing in April 2024

The Japanese government has announced plans to partially legalize ride-sharing services starting April 2024. This decision comes after years of debate and lobbying by ride-sharing companies and advocates who argue that such services can help address Japan’s chronic taxi shortage.

The approved model is a “Japanese-style ride-sharing” system managed by taxi companies. Drivers affiliated with taxi companies will be allowed to use their personal vehicles to transport passengers for a fee.

Key points of the new system:

1. Ride-sharing will be limited to areas and times with taxi shortages, such as:

• Tourist destinations and busy areas
• Nighttime and early morning hours
• Rural areas and islands with limited taxi services

1. Conditions for ride-sharing:

• Drivers must be affiliated with a taxi company but only need a regular driver’s license, not a taxi driver’s license
• Vehicles must meet the same safety standards as taxis
• Operations will be conducted through apps or systems managed by taxi companies, utilizing dispatch app data and radio taxi systems

1. The service will only be allowed in specific areas designated by the Ministry of Land, Infrastructure, Transport and Tourism
2. Taxi companies will be responsible for vehicle maintenance and transportation liability to ensure safety

The government plans to decide by June 2024 whether to allow ride-sharing services by operators other than taxi companies. Additionally, there are plans to offer driver’s license tests in 20 languages to encourage more foreign workers to become taxi drivers.

This policy aims to address the shortage of taxi drivers and revitalize transportation options in rural areas. However, it represents a cautious approach rather than full deregulation of ride-sharing services.

The introduction of ride-sharing is expected to expand transportation options in Japan, making travel easier and more convenient, particularly in underserved areas.