"Monthly Income Approaching 9 Million Won" Record-Breaking Boom in Japan's Taxi Industry

Tokyo Taxi Drivers' Monthly Average Income 6 to 9 Million KRW
Labor Shortage Occurs Due to COVID-19

The Japanese taxi industry, which had struggled due to COVID-19, has experienced an unprecedented boom. On the 17th, the Japanese weekly magazine SPA! reported through an interview with Ishizaki (pseudonym, 32), who switched to being a taxi driver last October, that taxi drivers' monthly income has sharply increased. Ishizaki, who lives in Tokyo, previously worked as an insurance salesperson earning a monthly salary of 160,000 yen (approximately 1.44 million KRW). However, planning for a third child, Ishizaki felt economic insecurity and decided to start working as a taxi driver.

The results were unexpected. During the day, tourists, and at night, intoxicated customers kept the rides coming nonstop. There were days when daily sales reached 100,000 yen (approximately 900,000 KRW). Ishizaki said, "Currently, my monthly income is around 600,000 yen (approximately 5.4 million KRW)," adding, "Some colleagues earn as much as 1,000,000 yen (approximately 9 million KRW) per month."

The Japanese taxi industry, which had struggled due to COVID-19, has experienced an unprecedented boom. On the 17th, the Japanese weekly magazine SPA! reported through an interview with Mr. Isazaki (pseudonym, 32), who switched to being a taxi driver last October, that taxi drivers' monthly income has increased sharply.
[Photo by Pixabay]

The reason Japanese taxi drivers are currently enjoying a boom is that the number of taxi drivers has drastically decreased due to COVID-19 and population aging. At the end of 2018, before the spread of COVID-19, there were about 291,000 taxi drivers in Japan, but by the end of last year, the number had decreased to approximately 232,000. Given this situation, taxi companies are offering settlement support funds, joining bonuses, and lowering entry barriers to recruit taxi drivers. However, the media pointed out that there are risks in entering the field solely for the money. To earn that much, working hours inevitably become longer, and drivers must operate even late at night.

As the taxi shortage continues, the Japanese government lifted the ban on ride-sharing services starting this month to meet the insufficient taxi demand, which also adds pressure by increasing supply in the market. The government plans to prioritize deploying ride-sharing services in areas and time slots where taxis are scarce. Industry analysis suggests that if ride-sharing services expand, the taxi industry could be further weakened.