Focus on taxis and takeovers after Japan’s biggest IPO of 2026 — here’s why they matter

Go’s IPO – Japan’s largest so far this year – has done more than provide a much-needed boost to the country’s weak listing season. It also provided the ride-hailing app with the capital needed to address an existential problem: the driver shortage in Japan.

Go, which went public on Tuesday, plans to use the 88.6 billion yen ($553 million) raised in the IPO to expand its robotics business and make acquisitions, according to a company spokesman.

“We intend to use the proceeds from the sale of the newly issued shares towards investing in taxi-related R&D and investing in business expansions, including strategic mergers and acquisitions in our businesses within and outside the taxi industry,” the spokesperson said.

The Japanese ride-hailing company’s debut came in one of Japan’s quietest listing seasons, at a time when the government was requiring startups to sell themselves rather than go public. Go has attracted investments from BlackRock, Wellington Management and M&G Investment Management in the process, underscoring where global institutional money wants to go in Japan right now. The stock has since fallen below the offering price, closing at 2,314 yen on Friday, down about 4% from its IPO price of 2,400 yen.

Go’s robotic ambitions are rooted in a human problem. Japan’s taxi industry suffers from a shortage of drivers. The number of taxi drivers has declined by nearly 20% in recent years, according to a report citing Japan’s Ministry of Land, Infrastructure, Transport and Tourism.

An aging population means this number is unlikely to recover. Ride-sharing services are set to launch in Japan in 2024 but remain limited to certain regions and require drivers to be employed by a taxi company — restrictions that have done little to address the shortage.

Founded in 1977 as a taxi operator, Go now operates Japan’s largest taxi-hailing app, with 35 million downloads, 85,000 partner vehicles, and an 80% share of Japan’s taxi app market by time of use, covering 46 of Japan’s 47 prefectures.

Joe believes that automated robots will be part of its future, although it is not clear when this vision will become a reality.

Go has partnered with Waymo, a subsidiary of self-driving company Alphabet, along with Nihon Kotsu, one of Japan’s largest taxi operators. The spokesperson said that Go is responsible for the strategic coordination of the partnership. CEO Hiroshi Nakajima previously said Go would not invest in self-driving systems itself, according to Nikkei Asia.

Go has not set a timeline for fully driverless operations.

“We plan to start driving fully autonomously, without the presence of a human specialist, when we validate our technology and get approval to do so,” the spokesperson said.

Meanwhile, Go is looking for ways to give its traditional businesses a competitive advantage. For example, the company has partnered with Kakao T, Alipay, and WeChat Pay that allow travelers from South Korea, China, and Taiwan to hail Go taxis directly from their local apps.

Go isn’t the only company betting on the future of robotaxis in Tokyo.

In March, Uber, Wave, and Nissan announced plans to trial robotaxi services in Tokyo by late 2026, marking Uber’s first autonomous vehicle partnership in Japan. The service will use Nissan Leaf electric cars powered by Wayve’s AI Driver and will be bookable through the Uber app.

Uber has also teamed up with S.Ride to allow international visitors to book rides through the Uber app. Didi Mobility Japan, a joint venture between SoftBank and Didi Chuxing, has a similar arrangement.