Why are taxis in Japan so expensive?
2 Answers
The high cost of taxis in Japan can be attributed to several factors, including low demand. Here are the main reasons why taxis are expensive in Japan: 1. Low demand: Japan has a small land area and a large population, especially in densely populated cities like Tokyo, where rail transportation is highly developed. The density of rail lines in Tokyo is approximately 1.5 times that of New York and 7 times that of Hong Kong. As a result, people prefer the convenience and punctuality of rail transportation for their daily commute. The extensive and efficient train system makes taxis less necessary for the general public. 2. High costs: Labor expenses, fuel costs, vehicle prices, inspection fees, maintenance costs, taxes, and insurance all contribute to the high cost of taking a taxi in Japan.
Taking a taxi in Japan during my trip felt really expensive, with the starting fare close to 700 yen, and additional charges per kilometer afterward. The reasons include the high-end nature of the taxis themselves, commonly using luxury models like the Toyota Crown, which leads to high maintenance and upkeep costs; Japan's fuel prices are expensive due to reliance on imported oil; plus, drivers' wages are not low, there's little industry competition, and companies rely on high fares to recoup costs. I recommend taking fewer taxis and using the JR Pass for trains or buses instead, which are much cheaper than taxis. If available, overnight buses can also be a substitute in the evening—don’t waste money on taxis. If you must take a taxi, try booking through an app for fixed rates or wait for promotional periods.