Japan mulls over permitting bus and railway companies to participate in the ride-hailing sector.
In a significant development, a Japanese government panel has put forward a proposal to enable bus and railway operators to enter the country's ride-hailing industry. The Regulatory Reform Promotion Council, chaired by Tetsuro Tomita, an advisor to East Japan Railway Co., made the recommendation.
During a meeting on Wednesday, Prime Minister Shigeru Ishiba underscored the importance of these regulatory reforms, stating that they are crucial for overcoming challenges caused by population decline and realizing "regional revitalization 2.0." He added that his cabinet will promptly approve a regulatory reform implementation plan.
The proposed changes come as part of the "Japanese version" of ride-hailing services, which began operation in April 2024. Under the current system, individual drivers are allowed to offer paid rides using their private vehicles, but only under the supervision of taxi companies. Bus and railway operators have been barred from assuming this supervisory role.
The council suggested that allowing bus and railway operators to enter the ride-hailing sector would help address the nationwide transportation shortage. A trial for these operators is proposed to identify potential safety and other issues. Additionally, the council suggested revising the system to relax and clarify requirements for bus and railway operators to obtain taxi business licenses.
The proposed regulatory changes are expected to stimulate the ride-hailing market, leverage existing public transport infrastructure, and address mobility challenges in regions facing depopulation and reduced public transport options. Careful regulatory oversight is planned to ensure safety and fair competition while supporting broader economic revitalization.
[Copyright *The Jiji Press*, Ltd.]
Photo by Reuters
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- The proposal to let bus and railway operators enter Japan's ride-hailing industry is expected to stimulate the growth of the ride-hailing market, leveraging their existing transport infrastructure.
- The reforms are aimed at addressing mobility challenges in regions experiencing depopulation and reduced public transport options.
- The regulatory changes could also impact the sport industry, as they might facilitate the evolution of Japan's ride-hailing services and potentially contribute to the growth of domestic football.
- The revision of the system could potentially help clarify requirements for bus and railway operators to obtain taxi business licenses and encourage the international transportation and business sectors to collaborate more closely.
- By revising regulations to allow bus and railway operators to supervise ride-hailing services, the Japanese government aims to stimulate the economy, support industry growth, and foster fair competition in the transportation sector.
