Go's Record IPO Fuels Robotaxi Ambitions and Acquisitions in Japan

Japan's biggest initial public offering (IPO) this year has given Go, the country's leading taxi-hailing app, the capital to tackle a critical challenge: a shrinking pool of drivers. The company, which went public on Tuesday, raised ¥88.6 billion ($553 million) and plans to invest in robotaxi development and strategic acquisitions, a spokesperson confirmed.

Go operates Japan's largest ride-hailing platform with 35 million downloads and 85,000 partner vehicles, commanding an 80% market share by usage time across 46 of 47 prefectures. The company was founded in 1977 as a traditional taxi operator and has since evolved into a tech-driven mobility service.

The driver shortage is a pressing issue. According to Japan's transport ministry, the number of taxi drivers has fallen by about 20% in recent years, and an aging population suggests the trend will continue. Ride-share services launched in 2024 have not alleviated the problem, as they remain limited and require drivers to be employed by taxi companies.

Go's robotaxi strategy relies on partnerships rather than in-house development. The company has teamed up with Waymo, Alphabet's autonomous driving unit, and Nihon Kotsu, a major taxi operator. Go is responsible for strategic coordination of this alliance. CEO Hiroshi Nakajima has stated that Go will not invest in autonomous driving systems itself, according to Nikkei Asia. A timeline for fully driverless operations has not been set; the company plans to launch when technology is validated and regulatory approval is obtained.

Meanwhile, Go is enhancing its traditional business with international partnerships. Through agreements with Kakao T, Alipay, and WeChat Pay, travelers from South Korea, China, and Taiwan can hail Go-affiliated taxis from their local apps.

Go's IPO attracted institutional investors including BlackRock, Wellington Management, and M&G Investment Management, signaling global interest in Japan's mobility sector. However, the stock has since fallen below its offering price, closing at ¥2,314 on Friday, down about 4% from ¥2,400.

Go is not alone in pursuing robotaxis in Tokyo. Uber, Wayve, and Nissan announced plans in March to pilot robotaxi services in Tokyo by late 2026, using Nissan Leaf EVs with Wayve's AI Driver, bookable via Uber. Uber also partnered with S.Ride for international visitors. Didi Mobility Japan, a SoftBank-Didi Chuxing joint venture, has a similar arrangement.