Japanese taxi app Go targets robotaxis after $553 million IPO

On Tuesday, Japanese taxi-hailing company Go went public in an initial public offering (IPO) that raised ¥88.6 billion ($553 million). According to a company spokesperson, Go plans to use the proceeds to expand its robotaxi business—referring to autonomous taxi services—and make acquisitions.

The spokesperson stated, “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.” By Friday, the company’s stock closed at ¥2,314, down about 4% from its IPO price of ¥2,400.

Go, which was founded in 1977, operates a taxi-hailing app with 35 million downloads, 85,000 partner vehicles, and an 80% share of the market. However, the company is pivoting toward autonomous solutions to address a severe driver shortage. The number of taxi drivers in Japan has fallen roughly 20% in recent years. Because of an aging population, this shortage is unlikely to recover. Although ride-share services launched in Japan in 2024, they have done little to address the shortage.

To build its autonomous taxi services, Go is coordinating a partnership with Waymo, which acts as an autonomous driving partner, and Nihon Kotsu, a taxi operator partner. Go is responsible for strategic coordination, though it has not set a timeline for fully driverless operations. A spokesperson noted that the company plans to begin driving fully autonomously, without a human specialist present, once they validate the technology and receive approval. Meanwhile, Go is supporting its traditional business by partnering with Kakao T, Alipay, and WeChat Pay, allowing travelers from South Korea, China, and Taiwan to book rides directly.

The competitive landscape for autonomous taxi services in Tokyo is intensifying:

• In March, Uber, Wayve, and Nissan announced plans to pilot robotaxi services in Tokyo by late 2026.
• Uber has also teamed up with S.Ride to let international visitors book rides through the Uber app.
• Didi Mobility Japan, a joint venture between SoftBank and Didi Chuxing, operates a similar arrangement.

Why it matters

Go’s IPO provides the capital necessary to address Japan’s structural taxi driver shortage, positioning the company to pivot toward autonomous operations and strategic acquisitions in a challenging market.