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Go\u2019s IPO \u2014 Japan\u2019s biggest so far this year \u2014 has done more than provide a much-needed boost to the country\u2019s languishing listing season. It has also supplied the taxi-hailing app with the capital required to address an existential issue: Japan\u2019s shortage of drivers. <\/p>\n
Go, which went public Tuesday, plans to use the \u00a588.6 billion ($553 million) raised in its IPO to expand its robotaxi business and make acquisitions, according to a company spokesperson. <\/p>\n
\u201cWe intend to use the proceeds from the sale of newly issued shares toward investment in research and development related to robotaxis and investment in business expansions, including strategic mergers and acquisitions in our business inside and outside of the taxi industry,\u201d the spokesperson said.<\/p>\n
The Japanese taxi-hailing company\u2019s debut came in one of Japan\u2019s quietest listing seasons, at a time when the government has been telling startups to sell themselves<\/a> rather than go public. Go drew investments from BlackRock, Wellington Management, and M&G Investment Management in the process, underscoring where global institutional money is willing to go in Japan right now. The stock has since pulled back below its offering price, closing at \u00a52,314 on Friday, down about 4% from the IPO price of \u00a52,400.<\/p>\n Go\u2019s robotaxi ambitions are rooted in a human problem. Japan\u2019s taxi industry is running out of drivers<\/a>. The number of taxi drivers has fallen roughly 20% in recent years<\/a>, according to a report citing Japan\u2019s Ministry of Land, Infrastructure, Transport and Tourism. <\/p>\n An aging population means that figure is unlikely to recover. Ride-share services launched in Japan in 2024<\/a>, but remain limited to certain areas and require drivers to be employed by a taxi company; restrictions that have done little to address the shortage. \u00a0<\/p>\n Go was founded in 1977<\/a> as a taxi operator and now runs Japan\u2019s largest ride-hailing app with 35 million downloads, 85,000 partner vehicles, and an 80% share of Japan\u2019s taxi app market<\/a> by usage time, covering 46 of Japan\u2019s 47 prefectures. <\/p>\n Go believes robotaxis will be part of its future \u2014 although it\u2019s not clear when that vision will become a reality. <\/p>\n Go has partnered with Waymo<\/a>, an autonomous driving subsidiary of Alphabet, alongside Nihon Kotsu, one of Japan\u2019s biggest taxi operators. Go is responsible for strategic coordination of the partnership, according to the spokesperson. CEO Hiroshi Nakajima has previously said that Go will not invest in autonomous driving systems itself, according to Nikkei Asia.<\/p>\n Go has not set a timeline for fully driverless operations. <\/p>\n \u201cWe plan to begin driving fully autonomously, without a human specialist present, when we validate our technology and receive approval to do so,\u201d the spokesperson said. <\/p>\n In the meantime, Go is looking for ways to give its traditional business a competitive edge. For instance, the company has partnered with Kakao T, Alipay, and WeChat Pay that allows inbound travelers from South Korea, China, and Taiwan to hail Go-affiliated taxis directly from their local apps.<\/p>\n Go is not the only company betting on Tokyo\u2019s robotaxi future. <\/p>\n In March, Uber, Wayve, and Nissan announced plans<\/a> to pilot robotaxi services in Tokyo by late 2026, marking Uber\u2019s first autonomous vehicle partnership in Japan. The service will use Nissan Leaf electric vehicles powered by Wayve\u2019s AI Driver, and will be bookable through the Uber app. <\/p>\n Uber has also teamed up with S.Ride<\/a> to let international visitors book rides through the Uber app. Didi Mobility Japan<\/a>, a joint venture between SoftBank and Didi Chuxing, has a similar arrangement.<\/p>\n<\/div>\n When you purchase through links in our articles, we may earn a small commission<\/a>. This doesn\u2019t affect our editorial independence.<\/em><\/p>\n