A taxi from ride hailing and sharing firm NearMe Inc. is displayed in Tokyo on Oct. 28, 2025. (Kyodo)

TOKYO (Kyodo) – A Tokyo-based company offering ride-sharing services that use technology to let separate passengers share the same vehicle is expanding into regions of Japan where public transportation is lacking.

It comes as Asian nation’s population shrinks and aging communities face driver shortages and lower demand. To eliminate so-called transit deserts, areas with no nearby services, the government has raised its target for joint operations such as ride shares to 100 cases nationwide by fiscal 2027.

The company, NearMe Inc., has partnered with local governments in 13 prefectures, from northernmost Hokkaido to Kumamoto in the southwest.

Its platform uses artificial intelligence to match passengers taking similar journeys in the same vehicles.

The local government in Nishio, Aichi Prefecture, began using the platform in October to replace a community bus that was phased out in March after ridership fell to about one per service.

Registered residents choose pick-up points and destinations from locations such as hospitals and public facilities, with rides fulfilled by a local taxi firm. The new system costs each resident 200 yen ($1.28) per ride, with excess fares covered by the city government.

"Meeting the travel needs of multiple people with a single vehicle will help ensure we can offer sustainable transportation," a Nishio official said.

NearMe’s services are also used to ferry tourists in Kitaakita, Akita Prefecture, linking nearby train stations and an airport to attractions such as ski slopes and hot springs.

According to the Ministry of Land, Infrastructure, Transport and Tourism, there are around 2,000 areas in Japan deemed transit deserts by local governments.

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