NAGASAKI: MOTEGI Toshimitsu, secretary-general of Japan’s ruling Liberal Democratic Party, on Sunday called for fully opening up the ride-hailing market, including allowing information technology firms to operate ride-hailing services.

In a speech in the southwestern city of Nagasaki, Motegi also expressed eagerness to expand the so-called sharing economy, in which individuals and companies borrow and lend goods and skills via the internet.

The sharing economy is “growing as a business,” Motegi pointed out. “The best policy to promote innovation is not to strictly regulate new work styles and businesses,” he said.

“It’s not right to think that (fully allowing ride-hailing services) is impossible in Japan,” Motegi noted. Ride-hailing services involve ordinary drivers using their personal cars to offer paid rides.

Starting in April, ride-hailing services are allowed in some parts of the country, but operators of such services are limited to taxi companies now.

Prime Minister KISHIDA Fumio considered unveiling a plan in June to draw up legislation to fully allow ride-hailing services, but he has decided to postpone it due to divided opinions within the LDP and persistent opposition from the transport ministry and Komeito, the LDP’s coalition partner.

JIJI Press