Photo/Illutration Tourists line up at a taxi stand at JR Kyoto Station in Kyoto in July. (Takashi Yoshida)

Prime Minister Fumio Kishida plans to announce a “Japanese version of ride-sharing” in his policy speech on Oct. 23.

The plan would give the green light to ride-sharing only in areas with taxi shortages and during times of high demand to help alleviate driver scarcity in tourist spots.

With consideration for the taxi industry, the ride-sharing program includes entrusting cab companies with operational management and vehicle dispatching.

Essentially, customers would contact taxi companies to choose either a cab or ride-sharing service.

Involving taxi companies instead of directly connecting drivers and customers through smartphone apps will help ensure passengers’ safety.

Motorists, meanwhile, could effectively use their spare time and cars to earn income.

Under the Road Transport Vehicle Law, the use of private vehicles for passenger transport is prohibited, in principle, under what is known as the “unlicensed taxi” act.

However, in depopulated areas with limited buses and taxis, a system exists that allows individuals to use their private vehicles to transport passengers for a fee.

Around 700 organizations, including municipalities and nonprofit organizations, serve as operators to support local transportation.

The Japanese version of ride-sharing aims to make the system more accessible in tourist spots and urban areas to balance supply and demand. The government will review the system within the framework of the current law.

There were roughly 230,000 company-employed taxi drivers as of the end of March, according to the Japan Federation of Hire-Taxi Associations.

The number fell by around 20 percent from that of 2019, with many taxi drivers leaving the industry due to a decrease in passenger numbers during the COVID-19 pandemic.

Economic organizations proposed ride-sharing.

Former Prime Minister Yoshihide Suga and other politicians have said since summer that “discussions are needed to introduce the system.”

However, overseas versions of ride-sharing, such as Uber, have faced challenges, including who would be held liable in the event of an accident and how to manage operations.

Taxi industry groups have opposed such services, citing concerns such as safety.

The Japanese version of ride-sharing will be discussed in the government’s digital administrative and fiscal reform meeting, with consideration given to both economic organizations and taxi industry groups.

Debates will focus on passenger protection and pricing.

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