Why Ridesharing is not Popular in Japan

Why Ridesharing is not Popular in Japan Car

There are many taxi dispatch apps in Japan, but they are all driven by people from taxi companies. Therefore the fare is high. We will explain the reason for this.

The current status of Uber in Japan

The current status of Uber in Japan

Uber is a car-dispatch website and car-dispatch app operated by the US company Uber Technologies and is said to be the pioneer of a service called ride-sharing. As of December, Uber is available in over 600 cities in 71 countries and territories worldwide, making it a global service.

As of December, Uber is available in over 600 cities in 71 countries and territories worldwide, transforming it into a global service. This is attributable to the taxi industry, a direct competitor to ride-sharing services, is strongly opposed to such services and the government has not changed its legislation, which indirectly prohibits paid ride-sharing services.

The law governing taxi services

The law governing taxi services

The law on which taxi services are based in Article 78 of the Road Transport Law. Article 78 of the Road Transport Act states that the use of a private vehicle for transport for a fee, such as a taxi, requires a government permit to qualify as a private taxi operator.

To qualify, you must meet all of the requirements, including age and taxi driving experience, history of violations of the Road Traffic Act and other laws, and funds. In addition, to become a taxi driver, you will need to obtain a standard second-class license. These systems indirectly prohibit the use of vehicles for transportation by Uber or other means.

The reason why  is not a good idea to have taxi services protected by a licensing system are as follow: 

First, it is possible to provide mechanisms to ensure the quality of drivers without “licensing”. Uber, for example, has a rating system where users rate drivers and has rules that revoke access to the app for drivers with low ratings. This system serves to weed out poor drivers from the market and ensures the quality of the drivers.

Secondly, the qualification requirements for private taxis are unreasonable. Age and taxi driving experience requirements, in my opinion, are unnecessary in the taxi business.. This is due to the fact that, no matter how much experience you have, there will always be a certain number of bad drivers who drive badly and don’t know where they’re going. That means that the “license system” cannot guarantee the quality of drivers. For these reasons, we conclude that a “license system” for taxi work is undesirable.

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