en.Wedoany.com Reported - Japan's taxi company Go went public on Tuesday, and a company spokesperson stated that it plans to use the 88.6 billion yen (approximately $553 million) raised from the IPO to expand its autonomous taxi business and pursue acquisitions. Founded in 1977 as a taxi operator, the company now runs Japan's largest ride-hailing app, with 35 million downloads and 85,000 partner vehicles, commanding an 80% share of Japan's taxi app market by usage time and covering 46 of the country's 47 prefectures.
Go plans to use the proceeds from the new share issuance for research and development related to autonomous taxis, as well as business expansion, including strategic mergers and acquisitions both within and outside the taxi industry. This strategy is driven by the driver shortage facing Japan's taxi industry. According to a report citing data from Japan's Ministry of Land, Infrastructure, Transport and Tourism, the number of taxi drivers in Japan has declined by about 20% in recent years, and an aging population makes this trend difficult to reverse. Ride-hailing services were launched in Japan in 2024, but are limited to specific areas and require drivers to be employed by taxi companies, offering limited relief to the driver shortage.
Go has positioned autonomous taxis as part of its future, although the timeline for realizing this vision remains unclear. The company has partnered with Alphabet's autonomous driving subsidiary Waymo and one of Japan's largest taxi operators, Nihon Kotsu, with Go handling strategic coordination for the partnership. According to Nikkei Asia, Go CEO Hiroshi Nakajima previously stated that Go itself will not invest in autonomous driving systems. Go has not set a timeline for fully driverless operations, and the company spokesperson said it plans to begin fully autonomous driving without human experts on board after verifying the technology and obtaining approval.
While autonomous driving technology is still maturing, Go is also seeking competitive advantages in its traditional business. The company has partnered with Kakao T, Alipay, and WeChat Pay, allowing inbound travelers from South Korea, China, and Taiwan to hail taxis partnered with Go directly from their local apps.
Go is not the only company optimistic about the prospects of the Tokyo autonomous taxi market. In March, Uber, Wayve, and Nissan announced plans to pilot autonomous taxi services in Tokyo by the end of 2026, marking Uber's first autonomous vehicle partnership in Japan. The service will use Nissan Leaf electric vehicles equipped with Wayve's AI driving system, and users can book rides through the Uber app. Additionally, Uber has partnered with S.Ride to allow international travelers to hail taxis via the Uber app. SoftBank and Didi Chuxing's joint venture, Didi Chuxing Japan, has similar arrangements. During the IPO process, Go attracted investments from BlackRock, Wellington Management, and M&G Investment Management, reflecting current global institutional capital flow preferences in the Japanese market. The stock has since fallen below its issue price, closing at 2,314 yen on Friday, down about 4% from the IPO price of 2,400 yen.
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