Automaker Toyota plans to launch a free self-driving transportation service in Odaiba, Tokyo, during summer (June to August), with intentions to transition to a paid service across central Tokyo districts starting in 2025. This initiative is part of Toyota's broader goal to establish a driverless robotaxi business, leveraging Level 4 autonomous driving technology (i.e., fully autonomous vehicles limited to specific locations and/or conditions).

The initial service will use Toyota Sienna minivans equipped with advanced sensors and AI for hazard prediction, operating autonomously but with a temporary safety driver onboard. The vehicles will be equipped with autonomous driving technology from self-driving tech company May Mobility.

The service will be offered in partnership with on-demand mobility service provider Monet Technologies.

This service aims to be Japan's first automated driving offering on public roads, amidst a nationwide taxi driver shortage and shifting regulations to permit ride-sharing.

Analyst QuickTake: Toyota first partnered with May Mobility in January 2022 to retrofit the latter’s tech into Toyota’s vehicles while also backing the company’s series C round. We believe this will help May Mobility introduce its tech in Japan, beyond its pilot in Hiroshima in 2021. Furthermore, competition in automated transportation services is increasing, with companies like Honda Motor and General Motors preparing to launch similar services in Tokyo by 2026.