Keio University

Takashi Kikuchi: The Challenge of the Kanagawa Version of Ridesharing, Opening Up from Transportation Deserts

Publish: June 17, 2024

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  • Takashi Kikuchi

    Other : President and Representative Director of Zushi Kikuchi TaxiOther : Vice Chairman of the Kanagawa Taxi Association

    Keio University alumni

    Takashi Kikuchi

    Other : President and Representative Director of Zushi Kikuchi TaxiOther : Vice Chairman of the Kanagawa Taxi Association

    Keio University alumni

In April 2024, a demonstration experiment for the Kanagawa version of ridesharing, "KanaRide@Miura," began in the Miura City area of eastern Kanagawa Prefecture. Miura City serves as the transport entity, expecting about 20 residents or workers in Miura City to serve as drivers. Existing taxi operators are also commissioned by Miura City to handle operation management and maintenance management.

The target area for "KanaRide@Miura" is the entire city of Miura. Ridesharing has been introduced primarily with southern Miura City as the starting point, operating from 7:00 PM to 1:00 AM. Among these, the Misaki district is known as a bustling area with many restaurants due to the presence of Misaki Fishing Port, attracting many excursionists from both inside and outside the prefecture in search of fresh seafood.

The railway stations within the area are Misakiguchi Station and Miurakaigan Station on the Keikyu Line, but both are far from the fishing port. Most excursionists travel between the railway stations and the fishing port by bus or taxi, and visitors from outside circulate around the fishing port area during the day. As a tourist destination centered on day trips, Miura City's taxi demand is supported by these excursionists. On the other hand, the number of accommodation facilities in Miura City is limited, and most people visiting restaurants at night are local residents. Taxi demand drops sharply at night, and taxi companies end their operations by 7:00 PM.

Since it takes about an hour and a half to walk from the fishing port to the nearest Misakiguchi Station, the discussion regarding ridesharing in Kanagawa began when local people appealed to Yuji Kuroiwa, the Governor of Kanagawa Prefecture, about the lack of nighttime transportation after dining out under these circumstances.

As preparation for the demonstration experiment, Kanagawa Prefecture, taxi operators and industry groups in Miura City, and the Kanto Regional Transport Bureau of the Ministry of Land, Infrastructure, Transport and Tourism became participating members, holding repeated discussions since the first review meeting in October 2023. I have also participated in these meetings as a member of the Kanagawa Taxi Association; normally, I manage a taxi company that has continued since my grandfather's generation, with Zushi City, Hayama Town, and Kamakura City as its business areas.

From the perspective of a taxi operator, "cruising taxi" operations seen in central Tokyo and other areas are rare in suburbs or small regional cities. Most are either "station-based taxis" waiting at station rotaries for passengers returning from work or shopping, or "radio-dispatched taxis" that arrive via radio or apps. In the case of dispatch, a request basically goes to the driver through the taxi company's operation management room, and they head to the site.

When conducting dispatch operations, personnel for operation management must be placed at the business office in addition to the driver. In southern Miura City, where there are no railway stations, labor costs for at least one person must be allocated even during the night when demand decreases. This demonstration experiment is also expected to resolve such burdens. Incidentally, in "KanaRide@Miura," two taxi companies in Miura City are handling the operation management.

In "KanaRide@Miura," ridesharing can be used at fares roughly equivalent to those of taxis. The dispatch app "GO" is utilized for dispatch management, payment settlement, and driver evaluation. Drivers are required to install drive recorders and in-vehicle cameras, and to perform vehicle maintenance.

Drivers sign a consignment contract with Miura City, and the city pays the drivers an amount added to the minimum wage. The minimum wage in Kanagawa Prefecture is 1,112 yen, and to pay this properly, sales of 3,000 yen per hour are necessary. In this demonstration experiment, the commissioned taxi companies handle interviews and education in addition to operation management. If taxi companies were to handle the employment (consignment contracts) of drivers in the future, whether or not these sales can be secured will likely be the point where opinions diverge.

In terms of ensuring passenger safety, the basic practice is to conduct education at the time of hiring, as well as roll calls at the business office at the start and end of daily operations to perform alcohol and health checks. A major factor in this demonstration experiment is that digital technology has made it possible to do this remotely. Additionally, they have enrolled in a new insurance policy specifically for ridesharing, developed by Kanagawa Prefecture and insurance companies, to prepare for passenger compensation.

This demonstration experiment was realized through the flexible application of Article 78, Item 2 of the Road Transportation Act, which serves as the basis for the permit for private paid passenger transport. It involves lifting the ban on the definition of "transportation deserts"—the requirement for taxis with white license plates—only for regions, days of the week, and time slots where vehicle shortages are severe.

Behind this are the issues of aging and labor shortages occurring across the transportation industry in general. The age group of taxi drivers is largely comprised of those in their 50s to 70s, and although the number of young and female drivers has been increasing in recent years, that movement is still limited.

At the taxi company where I serve as representative, the focus is on suburban residential areas, so there is high demand for commuting to work or school outside of bus operating hours at hub stations, and for hospital visits or shopping in areas far from bus stops even during the day. Based on these needs, my company has introduced nursing care taxis and childcare taxis (equipped with child seats) and responds by providing qualification training to drivers, but the demand in transportation deserts is diversifying. I hope that this demonstration experiment at the southern tip of Kanagawa, which started ahead of the rest of the country, will become a role model for solving issues regarding regional transportation.

*Affiliations and titles are as of the time this magazine was published.