The Japanese automaker Toyota announced Thursday that it would enter the capital of JapanTaxi app, a subsidiary of Nihon Kotsu, the main taxi company in Tokyo.
The two groups signed an agreement whereby “Toyota will invest 7.5 billion yen in JapanTaxi” and “acquire shares that will be newly issued by JapanTaxi,” according to a statement.
The level of Toyota’s ownership interest in the transaction has not been clarified.
In addition, the two companies plan to jointly develop new services for taxi operators.
JapanTaxi claims to be the largest taxi booking application in Japan, with 60,000 affiliated taxis, a quarter of Japan’s total fleet.
Toyota refers to its investment as a new step in its strategy to “revitalize” the taxi industry in Japan.
In 2016, the car manufacturer set up a partnership with the Japanese taxi association to work on the collection of traffic data in the metropolitan area of Tokyo or to offer new services.
At the same time, Toyota launched a new cab model last year inspired by London’s “black cabs”, which are more spacious, wheelchair-accessible and have heated seats.