If there is free competition, taxi companies will be driven out, the ideal situation required after the lifting of the Japanese version of the ride-sharing ban[StraightTalk]A transportation economics expert talks about the significance and challenges of the Japanese version of ride-sharing (1/4) | JBpress (JB Press)

[StraightTalk]A transportation economics expert talks about the significance and challenges of the Japanese version of ride sharing

share2

Partially lifted ride sharing ban (Photo: Afro)

Go to gallery page

On April 8th, the Japanese version of ride sharing began to be lifted. The number of regular drivers participating will start at 60 due to the limited lifting of the ban in some regions and time periods. Taxi companies are responsible for safety management, and for the time being they will employ regular drivers. The government continues to discuss the possibility of completely lifting the ban, including for new entrants, and plans to reach a conclusion in June.

What possibilities and challenges does the Japanese version of ride-sharing have? We asked Kazuhiro Ota, a professor at Senshu University’s Faculty of Commerce, who studies transportation policy from the perspective of transportation economics. (Interviewer: Hikaru Nagano, video journalist)

──The Japanese version of ride sharing has begun to be partially lifted. What is the difference between a taxi and a rideshare?

Mr. Kazuhiro Ota (hereinafter referred to as Ota):The original definition of public transportation is “open to the public.” Just like public telephones, anyone can use them. Therefore, drivers cannot choose their customers.

For example, if a driver refuses to accept a passenger because of a short distance traveled, the driver or taxi company may be subject to penalties. Taxis are public transportation, so you cannot refuse to ride.

However, in the case of Uber and Lyft, which started in the United States, drivers decide whether to work based on changes in the price depending on the time of day or area. In other words, services are concentrated at times and places where prices are high.

Ride-sharing advocates have affirmed this phenomenon as a “price mechanism.” The idea is that the appropriate price is determined by the balance between supply and demand.

On the other hand, there is also the idea that it would be a problem if prices fluctuated as they do in financial markets, depending on conditions such as weather, crowding, and time of day.

These points are key points when discussing whether or not ride-sharing is a good idea, and how ride-sharing should be designed.

──The central government agency is in charge of Japan’s version of ride sharing. What is your impression on this point?