Go eyes robotaxis and acquisitions after record Japan IPO
▼ Summary
– Go’s ¥88.6 billion IPO, Japan’s largest this year, will fund robotaxi R&D and acquisitions to address a critical driver shortage.
– Japan’s taxi driver count has fallen roughly 20% due to an aging population, and limited 2024 ride-share regulations have not solved the shortage.
– Go operates Japan’s largest ride-hailing app with 35 million downloads and an 80% market share by usage time, covering 46 of 47 prefectures.
– Go has partnered with Waymo and Nihon Kotsu for robotaxi development but has not set a timeline for fully driverless operations.
– Competitors Uber, Wayve, and Nissan plan to pilot robotaxi services in Tokyo by late 2026, marking Uber’s first autonomous vehicle partnership in Japan.
Japan’s biggest IPO so far this year has done more than revive a sluggish listing season. It has also handed Go, the country’s leading taxi-hailing app, the firepower to tackle a critical challenge: a severe shortage of drivers.
Go went public on Tuesday, raising ¥88.6 billion ($553 million). According to a company spokesperson, the proceeds will fuel expansion into robotaxis and strategic acquisitions. “We 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,” the spokesperson said.
The debut arrived during one of Japan’s quietest IPO windows, just as the government urges startups to sell rather than list. Yet Go attracted backing from BlackRock, Wellington Management, and M&G Investment Management, signaling where global institutional capital sees opportunity in Japan. The stock has since slipped below its offering price, closing at ¥2,314 on Friday, roughly 4% below the ¥2,400 IPO price.
Go’s push into autonomous vehicles stems from a human crisis. Japan’s taxi industry is hemorrhaging drivers. According to a report citing the Ministry of Land, Infrastructure, Transport and Tourism, the number of taxi drivers has dropped about 20% in recent years. An aging population makes a rebound unlikely. Ride-share services launched in 2024 remain limited to specific areas and require drivers to be employed by a taxi company, doing little to ease the shortage.
Founded in 1977 as a traditional taxi operator, Go now runs Japan’s largest ride-hailing app with 35 million downloads, 85,000 partner vehicles, and an 80% market share by usage time. It covers 46 of Japan’s 47 prefectures.
Go believes robotaxis are part of its future, though a timeline remains unclear. The company has partnered with Waymo, Alphabet’s autonomous driving unit, alongside Nihon Kotsu, one of Japan’s biggest taxi operators. Go handles strategic coordination for the partnership, the spokesperson said. CEO Hiroshi Nakajima told Nikkei Asia that Go will not invest in autonomous driving systems itself. The company has not set a date for fully driverless operations. “We plan to begin driving fully autonomously, without a human specialist present, when we validate our technology and receive approval to do so,” the spokesperson said.
In the meantime, Go is strengthening its traditional business. It has teamed up with Kakao T, Alipay, and WeChat Pay, allowing inbound travelers from South Korea, China, and Taiwan to hail Go-affiliated taxis from their local apps.
Go is not alone in betting on Tokyo’s robotaxi market. In March, Uber, Wayve, and Nissan announced plans to pilot robotaxi services in Tokyo by late 2026, marking Uber’s first autonomous vehicle partnership in Japan. The service will use Nissan Leaf electric vehicles powered by Wayve’s AI Driver and will be bookable through the Uber app. Uber has also partnered with S. Ride to let international visitors book rides through Uber. Didi Mobility Japan, a joint venture between SoftBank and Didi Chuxing, offers a similar arrangement.
(Source: TechCrunch)