Uber Technologies Inc.'s top executive urged Japan to allow rideshare drivers to work independently, rather than obliging them to work under taxi companies, under a scheme meant to address labor shortages in the local industry.
"There would be a lot more people willing to become rideshare drivers if they could work flexibly as independent contractors," Uber CEO Dara Khosrowshahi said at a press conference in Tokyo, adding that the Japanese version of ride-sharing has been slow to take off since a ban on such services was only partially lifted in April.
Although Khosrowshahi said the reforms were "a significant step forward in improving transport options for Japanese people and extending earning opportunities for drivers," he called for increased flexibility and the elimination of restrictions such as set time schedules and areas of operation.
He also said Uber will enter the Japanese market if the government completely lifts the ban on rideshare services and allows non-taxi firms to participate.
Under the current system, which was introduced to address a nationwide shortage of taxi drivers, taxi firms can employ and manage standard license holders to offer rideshare services with their private vehicles under certain conditions.
Amid persistent safety concerns, Khosrowshahi said that safety is a priority while stressing that it is one of the top reasons customers in other markets choose Uber due to its incorporation of technology features and partnerships.
Khosrowshahi said that the proposed improvements would additionally "allow Japan to ensure more convenient and affordable transportation options for its people" and welcome foreign tourists, as well as contribute to revitalizing the economy.
His comments come as Japanese Prime Minister Fumio Kishida on Friday instructed relevant ministers to proceed with discussions on the complete removal of the ban on ride-hailing services.
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