News Ban on ride-sharing services lifted in April

[thomas]

By the end of the present fiscal year, the government will establish a new system to allow individuals with private cars to transport passengers for a fee under the operational control of a taxi company in places that lack taxi services and during periods when taxi numbers are insufficient. Taxi companies are finding it challenging to source drivers due to a labour shortage, among other reasons. Under the new system, individuals with a standard driver's license can work for taxi firms.

The system will identify areas with driver shortfalls by drawing upon data from taxi companies' ride-hailing smartphone applications. The companies will be allowed to cover shortages by using "ordinary" drivers when taxi driver numbers fall short. The ride-sharing practice is expected to be utilized in regional areas and big cities. In consideration of safety concerns, among other issues, taxi companies are likely to oversee such issues as drivers' training, operational controls, vehicle maintenance and transportation-related responsibilities. The relationship between ordinary drivers and taxi companies will not be limited to employment contracts, and the government will seek measures to allow non-taxi drivers to work in various ways. The government also plans to take steps to allow companies other than taxi companies to newly participate in the taxi business.

Japan's taxi drivers are rapidly decreasing in number. According to government data, there were about 290,000 such workers in 2019. As of March, however, this figure had fallen to about 230,000. The decline is partly due to many taxi drivers retiring during the COVID-19 pandemic when the demand for taxi services dropped.

Japan to Largely Lift Ban on Ride-Sharing Services in April

The government has decided to largely lift its ban on ride-sharing services from April. By the end of the present fiscal year, the government will establish a new system to allow individuals with private cars to transport passengers for a fee under the operational control of a taxi company in...

japannews.yomiuri.co.jp

Cab operators to run ridesharing services in some areas from April | The Asahi Shimbun: Breaking News, Japan News and Analysis

 

[johnnyG]

I wonder how vehicle/liability/injury insurance works with all this? I doubt my personal auto insurance company would be okay with me driving for hire, and I'd fully expect them to decline/deny coverage if an accident happened while engaged in that.

 

[thomas]

According to the article, they'd operate "under the operational control of a taxi company." I assume that the taxi companies' business insurance will also cover those private drivers.

 

[Petaris]

I wonder how vehicle/liability/injury insurance works with all this? I doubt my personal auto insurance company would be okay with me driving for hire, and I'd fully expect them to decline/deny coverage if an accident happened while engaged in that.

I know this isn't in Japan but when I modified my car insurance I was specifically asked if I used the vehicle or drove for a ride sharing company. My guess is that either the Taxi company's insurance will cover them or that they will need to have a rider added to their current policy in order to do it.

 

[mdchachi]

I know this isn't in Japan but when I modified my car insurance I was specifically asked if I used the vehicle or drove for a ride sharing company. My guess is that either the Taxi company's insurance will cover them or that they will need to have a rider added to their current policy in order to do it.

Probably that kind of rider is not available in Japan.