On Jan. 27, the Japanese government is set to pass the Act on Special Measures concerning the Normalization and Reinvigoration of Taxi Businesses in an effort to curb excessive competition. The move is a change in tack from previous efforts to deregulate taxis, and it remains unclear the law will ‘reinvigorate’ the industry amid declining ridership. The revised law will set designated zones within urban areas where the number of taxis that can operate is capped. One of the most competitive areas in Japan is central Fukuoka, where there are approximately 4,400 taxis in service. The Fukuoka City Taxi Association says it will comply with the law and work to reduce the number of cabs on the road. Some drivers said they welcome the new law because they might be able to earn more fares, but an official from Panda Taxi, a local company with an initial fare of ¥290 that runs its own routes, objected: “We don’t have enough vehicles as it stands. Forcing reductions will hinder free competition.” Taxi fares are expected to increase when the consumption tax hike goes into effect in April. With the new tightened regulations, it appears that companies will need to focus on customer service to keep people coming back. Source: Nishinippon Shimbun 1/10
