Small and medium-sized taxi firm operators' stated choices of future business models: A case study in Japan based on hybrid choice model with panel effects

Abstract

Taxi firms in Japan faced various challenges, including long-standing issues such as dwindling demand and driver shortages, recent competition from new technologies, and the short-term impact of the COVID-19 outbreak. These pressures necessitate a diversification of their business model, yet it remains uncertain how operators plan to adapt and how the government can facilitate the evolution of their mobility services. This study explores these issues from the viewpoint of small and medium-sized taxi firm operators in Japan, specifically focusing on their attitudes towards potential barriers, their preparedness for, and preferences towards new business models. To that end, we conducted a Statd Preference survey on new business models with taxi companies in the Chugoku region, western Japan. The findings reveal that an operator's attitude towards regulatory strictness indirectly lowers the likelihood of choosing new business models, whereas operational difficulties increase this probability. Interestingly, taxi firms operating in medium-sized cities tended to collaborate with private or public sectors in their new business models compared to firms in other areas. This study offers insights into policy discourse and design, emphasizing the need for strategic, collaborative, and contextually-aware responses to the evolving challenges within Japan's taxi industry.