Goldman-backed taxi app Go says ridership strong even after fare hikes
Go President Hiroshi Nakajima said riders have absorbed higher prices and demand hasn't fallen as Taxi users are generally less price-sensitive.
Go, the taxi booking app backed by Goldman Sachs, is experiencing robust demand despite recent fare hikes in Japan, according to President Hiroshi Nakajima. Riders have shown resilience in absorbing the increased prices, with demand not declining, Nakajima stated. The convenience that private taxis offer over public transportation seems to outweigh the higher costs, he explained. As a Goldman Sachs-backed firm, Go is banking on customers continuing to spend on rides despite inflationary pressures.
In Tokyo, taxi fares saw a 10% increase in April, following a larger 14% hike in 2022. Japanese taxi fares are among the highest globally. Despite this, Go's shares have surged 63% since its June IPO, outperforming Japan's TSE Growth Market 250 Index by a wide margin of 63% versus 12%. The company aims to enhance average revenue per ride by expanding luxury car services and targeting corporate clients. Both these strategies have contributed to sales growth, Nakajima added.
"The commission fee rate is rising as we introduce more premium taxis," Nakajima noted. With a current subscription plan, readers are unable to comment on articles. However, before commenting for the first time, users must create a display name in the Profile section of their subscriber account page. The subscription plan in question does not permit commenting. For further details, readers are directed to the platform's FAQ.
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