newmo, a Tokyo startup that runs a taxi business, and KDDI said on the 6th that they have formed a capital and business alliance. The two aim to begin operating self-driving taxis in Sakai, Osaka Prefecture, during 2028. They hope eventually to extend the self-driving system to taxi companies across the country.
Founded in 2024, newmo has grown by acquiring taxi companies and now runs about 1,900 vehicles in Osaka, Kanagawa and elsewhere. It also operates a ride-hailing app under the same name. The company entered the self-driving field in 2025 and has developed its system using KDDI's data centers. Since this spring it has also been running test drives in Sakai and Osaka.
Driver on board at first
For the commercial service in Sakai, a driver will ride in the vehicle for the time being as a precaution. Fares have yet to be decided.
Other companies are chasing fully driverless operations. Three firms, including the ride-hailing app operator GO and Google-affiliated Waymo, aim to start services with no driver aboard in Tokyo during 2027. The government is backing the push and has set a target of 10,000 self-driving taxis and buses by fiscal 2030.