TOKYO – With Japan’s chronic taxi driver shortage set to worsen as international tourists return, operators are turning to new university graduates to make up the numbers, forcing a shift in a profession long dominated by middle-aged men.

The shortage worsened after more than 10,000 drivers left the industry during the Covid-19 pandemic, reducing the number of drivers in Tokyo to around 54,000, according to industry body Tokyo Hire-Taxi Association (THTA).

The average age of a taxi driver in Tokyo is 58, according to THTA.

Many take up the profession in their 40s or 50s and work for around 10 years until their retirement – a cycle that will keep the lack of drivers an unresolved issue unless younger people can be attracted to make their long-term careers in the industry. 

In a country where ride-sharing services such as Uber Technologies and China’s Didi Global have been banned to protect the taxi industry, the lack of drivers can make it difficult to get a cab during peak hours. Local media has reported on long lines at taxi stands at airports and popular tourist destinations.

The government in September announced plans to review working conditions in the taxi and bus industries and consider measures to help operators resolve the shortage of drivers. 

The Transport Ministry is reportedly also considering adding taxi and bus drivers to its skilled-worker visa programme to address the shortage, underscoring the severity of the problem given Japan’s longstanding reluctance to bring in migrant workers. 

To attract younger drivers, taxi companies offer flexible hours and performance-based pay – a break from the rigid, seniority-based system that still dominates many Japanese companies. The hope is that these drivers will stick with the job for 20 to 30 years. 

The push to hire younger drivers is starting to bear fruit. 

Nihon Kotsu, Tokyo’s biggest taxi operator, began hiring new graduates in 2012. From an initial intake of just six people, it now has about 1,000 drivers – or 30 per cent of its workforce – who are in their 20s. At its office in the capital’s Edogawa ward, the average driver age is 24.

“A shortage of drivers has always been an issue, but a vacuum was created after about 20 per cent of drivers suddenly left their jobs during the pandemic,” said Mr Takashi Nomura, a spokesman for Nihon Kotsu. 

Mr Takeru Sanada, 23, who joined Nihon Kotsu in 2022 after graduating from university, said he enjoys the flexibility the job offers him, and the chance to meet tourists. 

“I used to feel nervous not knowing the geography of Tokyo at the beginning, but I quite enjoy it now as I get to drive to new spots and speak to different customers,” he said, adding that being a self-professed night owl has helped. “I also get to take foreigners to the airport and drive them almost every day.” 

A standard shift at Nihon Kotsu lasts around 8½ hours, including a mandatory three-hour break.

There is also an optional 2½ hours of overtime, but drivers get a full day off after each shift, giving them time to pursue their own interests.

Nihon Kotsu has been trialling a five- to six-hour shift since March. “We received an unexpectedly great response,” Mr Nomura said, adding that many people in their 20s to 50s applied for the trial. 

“In this industry, everyone gets to do (a) similar job; it doesn’t matter how old you are,” he added.

According to Mr Nomura, some drivers in their first year of work make between 500,000 yen (S$4,600) and 600,000 yen a month. In comparison, a regular starting salary at a corporation is around 220,000 yen a month. 

Ms Mana Kouda, a 23-year-old university graduate from Tokyo, said that what appealed to her most was Nihon Kotsu’s additional services such as driving tourists around to Tokyo’s main attractions, and services with a social welfare touch like taking elderly passengers to hospital.

“I felt there was stability as I would be able to do additional jobs other than just driving people every day,” she said. She uses her free time to study English. 

Another Tokyo taxi firm, Kokusai Motorcars, has seen a sharp jump in graduates after it strengthened its hiring efforts, including organising recruiting events at universities and having students’ parents visit the company to learn more about the industry.

It also introduced policies to tackle sexual harassment and aggressive customers, such as allowing drivers to kick unruly passengers out of their cabs, and reporting them to the police. Now, about 120 new graduates join each year.

“Nationwide, the shortage of taxi drivers due to the pandemic hasn’t been resolved. But it’s getting better in Tokyo,” an official at Kokusai Motorcars said. BLOOMBERG