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

2024/06/17

In April 2024, a demonstration experiment for the Kanagawa version of ridesharing, "Kana-Ride @ Miura," began in the Miura City area in 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 and maintenance management.

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

The railway stations in the area are Misakiguchi Station and Miurakaigan Station on the Keikyu Line, but both are far from the fishing port. Most tourists 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, taxi demand in Miura City is supported by these tourists. On the other hand, the number of accommodations in Miura City is limited, and most people visiting restaurants at night are local customers. Taxi demand at night drops sharply, and taxi companies finish 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 for 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 discussions since the first review meeting in October 2023. I have also participated in these meetings as a member of the Kanagawa Taxi Association; however, I usually manage a taxi company that has continued since my grandfather's generation, with an operating area covering Zushi City, Hayama Town, and Kamakura City.

From a taxi operator's perspective, "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 plazas for commuters and shoppers returning home, 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 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. It is expected that this burden will be resolved through this demonstration experiment. Incidentally, two taxi companies in Miura City are responsible for operation management in "Kana-Ride @ Miura."

In "Kana-Ride @ 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 evaluations. 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 that includes a premium on top of the minimum wage. The minimum wage in Kanagawa Prefecture is 1,112 yen, and to pay this, sales of 3,000 yen per hour are originally required. In this demonstration experiment, the commissioned taxi companies handle interviews and education in addition to operation management. If taxi companies take over the employment (consignment contracts) of drivers in the future, the feasibility of securing these sales will likely be the point of contention.

In terms of ensuring passenger safety, the basic practice is to conduct roll calls at the office at the start and end of each day's work to perform alcohol and health checks, in addition to education at the time of hiring. A major point of this demonstration experiment is that digital technology has made it possible to do this remotely. Furthermore, they have enrolled in a new rideshare-specific insurance developed by Kanagawa Prefecture and insurance companies to provide coverage for passengers.

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 permits for private paid passenger transport. It relaxes the definition of "transportation deserts"—the requirement for taxis with private 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 throughout the transportation industry. The age group of taxi drivers is largely composed of people 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. Therefore, there is high demand for commuting use 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 provides qualification training for 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 challenges for regional transportation.