OSAKA--Prefectural and city governments here are considering introducing ride-sharing services for the 2025 Osaka Kansai Expo to help ease the expected transportation crunch during the world's fair.

“Taxis are a crucial means of transportation, but there is concern about a driver shortage,” Osaka Governor Hirofumi Yoshimura said at a meeting of senior officials from prefectural and city governments on Oct. 19. “We need to show alternatives in this Osaka metropolis.”

He expressed his intention to roll out ride-sharing services across the prefecture for only a year starting from next autumn that is six months ahead of the expo’s opening.

A joint project team of the prefectural and city governments will be set up in November to compile a draft by the end of this year.

Yoshimura first announced his intention to adopt ride-sharing at a prefectural assembly meeting on Oct. 17.

The governor regards the adoption for the limited period as Step 1, with plans to consider permanent implementation as Step 2 after closely examining areas for improvement.

A crucial labor shortage in the taxi industry lies behind the push.

Over 15 years through 2021, the number of taxi drivers nationwide has dropped by around 40 percent to 221,849 as of that year, according to the Osaka prefectural government.

The same trend is being seen in the prefecture.

The workforce is also aging, with the average age of male drivers in the prefecture increasing from 56 years old in 2004 to 62.2 years old in 2022.

Prime Minister Fumio Kishida touched upon introducing ride-sharing in his policy speech on Oct. 23.

The Kanagawa prefectural government is also considering adopting a Kanagawa version of ride-sharing in the city of Miura, in which taxi companies would manage the operation.

Prompted by the upcoming expo, the Osaka prefectural and city governments are fast-tracking their ride-sharing.

THE PUBLIC’S WELFARE

Roughly 28 million people are expected to visit the event during the period from April to October 2025, further driving up the demand for taxis.

In response, Yoshimura proposed an Osaka version of ride-sharing in a top-down approach, according to a senior prefectural official.

Visitors cannot directly access the expo site on the artificial island of Yumeshima in Osaka Bay using private cars or taxis.

But the prefectural and city governments hope that ride-sharing could help alleviate the shortage of taxis when visitors travel in the prefecture or conduct business activities during the expo.

However, introducing the services within about a year poses significant challenges.

Under the Road Transport Law, the use of private vehicles for passenger transport is prohibited, in principle, as part of the so-called “unlicensed taxi” act.

While ride-sharing is widely used abroad, Japan faces issues such as ensuring safety and protecting users. Taxi industry groups have also opposed such services.

Therefore, the prefectural and city governments are focusing on transportation for “public welfare” in their push for its implementation.

Article 78, Clause 3 of the law stipulates that the use of private vehicles for passenger transport is exceptionally allowed with permission from the transport ministry provided the areas or hours are limited to when it’s necessary to ensure public welfare.

According to the ministry, there have been precedents based on the article, including cargo transportation during peak times such as the year-end and New Year’s holidays, as well as the use of taxis for delivery services during the state of emergency due to the COVID-19 pandemic.

However, there are no specific requirements to determine whether the expo falls under public welfare. Decisions will be made on a case-by-case basis.

“If a national project such as the expo brings numerous visitors to Osaka, securing transportation could become an extremely important public need,” Yoshimura said on Oct. 26.

On the other hand, a senior prefectural official was concerned, saying, “The concept of public welfare is extremely vague and it is largely left to the discretion of the transport minister.”