Although VTC applications exist in Japan - Uber, for example, has been present in Tokyo since 2018 - this type of service is still finding it hard to find a place in the travel options of Japanese people or foreigners present in Japan. This is primarily due to the relatively conservative mindset of the Japanese. They have always had taxis, trains, underground trains and buses at their disposal. So why look for something new?
There is also the fact that a VTC service generally costs more expensive than a taxi. This is the case at Uber which does not offer the option of a privately-owned basic vehicle. The ride-sharing giant's application only lists Premium vehicles or traditional taxis. For the latter, Uber takes a commission. As a result, the fare is higher.
The shortage of means of transport works in favour of car-sharing
Another major obstacle remains the taxi lobby. This sector and its allies in government have long opposed complete deregulation, as elsewhere in the world. The government's radical shift stems from growing public dissatisfaction with finding a car, while transport options are shrinking.
" The problem of not being able to go anywhere is a problem that affects the whole of Japan, and we can't leave this question unanswered." said Taro Kono, Minister for Digital Transformation and Minister of State for Regulatory Reform. "It's a first step towards an agile approach to changing things" the minister told the Asian weekly Nikkei Reviewpublished in Japan.
As a result, Tokyo's taxi fleet has been augmented since April by self-employed vehicles. But the service is still very restrictive. It is only available in certain districts of the capital. In addition, the use of VTCs is limited in terms of opening hours. For example, in certain areas of Tokyo, ride-hailing is only possible at certain times during the weekday morning, as well as on Friday evenings and weekends.
Taxi companies behind car sharing
And finally.., private vehicles must be affiliated to a taxi company. The Nikkei Review gives the taxi company Nihon Kotsu as an example. It has started to operate 60 private cars driven by approved drivers, which have been added to its fleet of official taxis. " Japanese-style car-sharing is an evolved form [of conventional car-sharing services] and embodies a high level of safety expected by the public." Ichiro Kawanabe, President of the Japan Federation of Hire Taxi Associations and Managing Director of Nihon Kotsu, told the Nikkei Review.
Nihon Kotsu has received more than 10,000 applications from drivers in the Tokyo area. Drivers are required to submit an application before they can be licensed, alcohol and driving tests. They also receive training in safe driving and car maintenance.
Another obstacle for travellers is the fact that this service is currently only available in four of the country's prefectures. These are certain districts of Tokyo, but also Aichi, Kanagawa and Kyoto. But, according to a statement by Tetsuo Saito, Minister of Transport, to the local press, ". we hope to launch this service nationwide as soon as possible" . VTC services could therefore begin in eight other prefectures or areas in May. Nagoya and Osaka are likely to be added.
Customers can therefore book their journey via four smartphone car-sharing applications: Uber, Didi, Go and S.Ride. Other applications, in particular Grab and Lyft, which have a strong presence in South-East Asia, could receive government authorisation to launch a service in Japan.
