Automotive manufacturer Toyota agreed yesterday to invest ¥7.5bn ($68.9m) in Japan-based ride hailing app developer JapanTaxi as part of a strategic partnership agreement.
JapanTaxi operates an app that works in partnership with a range of taxi operators, allowing users to order a lift from whichever driver is nearby and available. It has registered roughly 60,000 drivers to a network that spans all 47 of the country’s prefectures.
Toyota and JapanTaxi intend to work together to develop technology that can benefit Japan’s taxi industry, such as big data collection and analysis, connected taxi terminals and more efficient dispatch support systems.
The partnership will involve linking Toyota’s Mobility Services Platform with JapanTaxi’s platform to increase digitalisation for taxi service operators.
Toyota formed Toyota Mobility Service in December 2017 by merging its fleet and rental leasing services into a single entity that will also develop mobility technology and services.
The carmaker signed a memorandum of understanding with Japan Federation of Hire-Taxi Associations in August 2016 to assess ways they could collaborate on development of the taxi of the future. It began installing data collection devices in taxis on a trial basis in 2017.
JapanTaxi had previously received ¥500m in funding from Mirai Creation Investment, the investment partnership formed by Toyota, financial services firm Sumitomo Mitsui Banking Corporation and asset management firm Sparx Group, in 2017, according to Bloomberg.
News of the agreement came shortly before an announcement by China-based ride hailing platform Didi Chuxing and Japan-headquartered SoftBank today, stating that they plan to introduce their own app-based service in Japan.