The introduction of self-driving taxis is a significant development in the transportation industry, aiming to provide safe and efficient services to passengers. These autonomous vehicles are equipped with a system that includes personnel monitoring the autonomous driving situation from the driver’s seat. This system not only ensures safe operation but also demonstrates that even drivers without the knowledge and skills of professional taxi drivers can provide services. While pricing is still under discussion, it is likely to be comparable to regular taxi fares.
In terms of operational areas, self-driving taxis resemble autonomous buses with designated routes. However, they offer more flexibility in operations and can easily provide services in areas or time slots where buses and regular taxis are scarce. By directing self-driving taxis towards short-distance simple transport for a larger number of users, human drivers can focus on more profitable long-distance trips.
This initiative is a crucial step towards the future expansion of business opportunities. The development of self-driving taxi vehicles and commercial operation services by Tier Four serves as a demonstration of their autonomous driving technology and a vital step towards future business expansion. Tier Four aims to package their autonomous driving system, self-driving taxi solutions, and autonomous vehicle hardware to offer comprehensive services to their clients.
According to Tier Four’s founder and CEO/CTO, Shinpei Kato, the goal is to have self-driving taxi commercial operations up and running within a few months of initiating a project. The Japanese government aims to provide Level 4 autonomous driving services in over 100 municipalities nationwide by 2027, and Tier Four believes they can contribute to achieving this goal. Tier Four plans to launch commercial self-driving taxi operations in three locations in Tokyo by 2025, including Odaiba, Shinjuku, and Minato. These services will serve as a showcase for Tier Four’s technology and solutions to domestic and international companies.
Tier Four’s business model is centered around their open-source autonomous driving software, Autoware, which allows companies and research institutions worldwide to utilize it freely. By implementing Autoware in self-driving taxis and offering it as a solution, Tier Four aims to incorporate this software into the development of new electric vehicles for self-driving taxi services.
This approach allows companies to purchase only the self-driving taxi system from Tier Four or opt for a complete package including vehicles. Leveraging the open-source Autoware, companies can develop their autonomous vehicles. Tier Four also anticipates that automakers will adopt Autoware to develop autonomous vehicles, with Suzuki and Isuzu already investing in the company. This vertical integration of technology sets Tier Four apart from Waymo, a US-based company developing most of the necessary technology for self-driving taxis.
In Japan, the aging population and the shortage of taxi and bus drivers due to the decline in public transportation infrastructure have created challenges. With regulatory relaxations, joint operations with existing taxi companies may eliminate the need for approval from the Ministry of Land, Infrastructure, Transport, and Tourism for the provision of self-driving taxis in regional areas.
In conclusion, the commercialization of self-driving taxis serves as a model for future transportation services, addressing challenges in the industry and paving the way for innovative solutions in the evolving landscape of autonomous vehicles.