Japan's transport ministry plans to provide ride-hailing service operators with subsidies to cover two-thirds of the cost of introducing vehicles and multilingual ride-hailing apps, in an effort to improve transportation options for foreign tourists, sources said.
Japan currently has a system that allows taxi companies to operate ride-hailing services and another that allows local governments and nonprofit organizations to do so, but the ministry is cautious about fully opening up the ride-hailing market, which would include allowing tech firms to enter the business.
With the number of inbound visitors rapidly increasing, rural areas are facing the urgent challenge of securing transportation options for tourists.
The planned subsidies are expected to be offered to taxi companies, local governments, destination management organizations and others. The ministry plans to include related funds in a supplementary budget for fiscal 2024.
Separately, the ministry plans to launch a test project to concentrate and optimize guest pickup and drop-off services provided by accommodation and tourism facility operators.
In the test project, the ministry will select about 10 regions to receive subsidies to cover two-thirds of related costs. It will promote the introduction of a system to find the most efficient route according to customer demand.
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