Ridesharing Restrictions in Japan to be Eased on Extremely Hot Days; Some in Govt Calling for All Restrictions to be Lifted

The Yomiuri Shimbun

1:00 JST, August 4, 2024

Ridesharing restrictions will be eased regarding the operation and number of vehicles when it is extremely hot or when large-scale events are being held, the Land, Infrastructure, Transport and Tourism Ministry said Friday.

Ridesharing is a paid ride-hailing service in which private drivers work under the operational control of taxi companies.

Restrictions on ridesharing services have been eased after it was noted that there was an insufficient number of ridesharing vehicles.

The relaxed restrictions will go into effect as early as Monday. If the temperature is forecast to be at least 35 C in Tokyo, Osaka City and 10 other areas by 10 a.m. two days prior, the ridesharing restrictions will be eased for a certain period of time before and after the temperature hits 35 C.

The regulations will also be eased around the areas where fireworks festivals, music festivals and other large-scale events are taking place following requests from their organizers and local governments.

“We will continue to improve the ridesharing system to meet the needs of users in order to alleviate a transportation shortage,” Land, Infrastructure, Transport and Tourism Minister Tetsuo Saito said Friday.

Ridesharing services were launched in April, mainly in urban areas under the management of taxi companies. The operation times and number of vehicles were limited based on taxi use, but restrictions have gradually become more relaxed.

In July, the government eased ridesharing regulations to allow more vehicles on the road on rainy days, based on data that the number of ridesharing vehicles were insufficient.

It is believed the government relaxed the ridesharing rules further as it is expected the service will be utilized more on extremely hot days.

Some within the government are calling to lift all ridesharing restrictions so IT and other firms, besides taxi companies, can offer a ridesharing service, eyeing economic growth though regulatory reforms.

“We need to swiftly move on to the next step if we cannot solve the nationwide transportation shortage,” said Taro Kono, the minister in charge of administrative and regulatory reform, at the end of July, when the number of ridesharing vehicles in operation had not increased.

The ministry is cautious about completely lifting restrictions due to safety and operational management concerns but hopes to improve the existing ridesharing system to avoid criticisms over a transportation shortage. The ministry also intends to adopt a policy enabling bus operators and other companies to enter the market by the end of the year.

However, in July, the government’s Council for Regulatory Reform decided to set up a preparatory meeting to study the legal framework, partly with a view to completely lift restrictions. Negotiations over lifting restrictions are likely to intensify in the future.